A crypto index fund manager has submitted an S-1 filing with the Securities and Exchange Commission (SEC) to gain approval for an exchange-traded fund (ETF) linked to the price of Dogecoin (DOGE). This filing occurred shortly after the company established a Dogecoin ETF trust in Delaware.
The SEC requires two specific filings for the listing and trading of ETFs on public exchanges: the S-1 and the 19b-4 forms. The S-1 form is filled out by the issuer, providing product details, while the 19b-4 form, which is submitted by the listing exchange, outlines the necessary conditions and amendments to listing rules for the new product.
This filing is not the first attempt to secure approval for a Dogecoin ETF; other companies, like Rex Shares and Osprey Funds, have also sought regulatory clearance for various crypto ETFs, including those focusing on Dogecoin. However, the S-1 filings from these companies differ in structure and legal approach. The current filing aims for a DOGE ETF under the 33 Act, which focuses on commodity-based ETFs, as opposed to the 40 Act utilized by Rex and Osprey. The 40 Act provides greater investor protections through stricter SEC regulations.
Filings under the 33 Act typically apply to specialized, commodity-based ETFs, whereas the 40 Act places additional restrictions such as limitations on leverage and short-selling, as well as enforcing stringent fiduciary oversight and governance. This distinction is significant in terms of the protections provided to investors and the operational structure of the funds.
The landscape for cryptocurrency ETFs in the United States has been evolving, especially following the SEC’s approval for the simultaneous listing and trading of eleven Bitcoin ETFs on US exchanges in January 2024. Since then, additional ETFs, including those for Ethereum, have also received approval.
This specific fund manager has previously launched Bitcoin and Ethereum ETFs and is now pursuing approvals for additional cryptocurrencies, such as XRP and Solana, alongside Dogecoin. The overall regulatory environment for crypto has been impacted by leadership changes at the SEC, particularly after the presidency shifted to Donald Trump, who appointed individuals known for being more favorable towards the cryptocurrency industry.
The appointment of crypto-friendly leaders within the SEC has raised hopes for more favorable regulations regarding cryptocurrency trading and investment products. Recently, a working group was established by the Trump administration to explore potential cryptocurrency policies, signaling a more proactive approach towards regulation in the crypto space.
The interplay between different regulatory frameworks, the move to list new cryptocurrency ETFs, and the evolving stance of the SEC concerning digital currencies indicate that the crypto landscape is becoming increasingly dynamic. As the situation develops, it will be important to monitor how these changes might influence the market, investor options, and the potential risks involved with investing in cryptocurrency-related products.