In a significant move for crypto enthusiasts, 21Shares has proactively amended its application for a Dogecoin exchange-traded fund (ETF). This update follows the initial submission made last month and occurs shortly after the US Securities and Exchange Commission (SEC) confirmed the acknowledgment of the filing, which initiated the thorough review phase.
New Developments in Dogecoin ETF Applications
The recent SEC documentation indicates that 21Shares has refreshed its application for a Dogecoin ETF. This endeavor aims to grant institutional investors a streamlined pathway to invest in the popular cryptocurrency, which has garnered attention due to its strong community backing and cultural relevance. Nasdaq has also been involved, submitting the necessary forms to begin trading this ETF, an important step in the approval timeline.
Bloomberg’s seasoned analyst Eric Balchunas highlighted the significance of this amendment on an X post. He suggested that such alterations often follow SEC communication, hinting at a possible positive shift in the asset manager’s dialogue with regulatory bodies. This indicates a burgeoning optimism regarding the potential for approval in the upcoming months.
Recently, the SEC opted to postpone making a decision on Grayscale’s application for a Dogecoin ETF for additional comments and responses. The agency’s timeline for a verdict on this filing stretches to August 19, with a final possible deadline on October 18, amplifying the anticipation surrounding these developments.
Furthermore, Bitwise has also joined the fray, seeking to secure a Dogecoin ETF. However, the SEC has delayed their consideration as well, with a next deadline approaching on June 15. Subsequent check-ins are slated for September 13 and November 12, leaving the market guessing about the future of these proposals.
Likelihood of SEC Approval This Year
According to Polymarket insights, there stands a robust 69% probability that the SEC will approve a Dogecoin ETF before the year’s end. Intriguingly, the odds drop significantly to just 15% for a decision to be reached by July 31. Analysts Seyffart and Balchunas from Bloomberg have voiced their perspectives on these chances.
A recent chart shared by Balchunas illustrated an 80% probability of an ETF approval this year, a figure derived from the assumption that the SEC recognizes Dogecoin as a commodity. The presence of a regulated futures market for Dogecoin adds another layer of confidence, especially following the legal victory in the Grayscale case, reinforcing that both spot and futures markets are treated similarly.
Currently, Dogecoin is trading around $0.20, reflecting a decline of over 9% in the last 24 hours, as per the latest information from CoinMarketCap.
