The U.S. Securities and Exchange Commission (SEC) has delayed making a decision on Bitwise's Dogecoin exchange-traded fund (ETF).
Bitwise, the world's leading cryptocurrency index fund manager, originally filed to launch the ETF back in January. The product is meant to offer investors direct exposure to the leading meme cryptocurrency by market cap.
It is worth noting that the review period for such applications usually spans a total of 240 days, meaning that the delay does not mean that the product will eventually be rejected by the SEC.
Grayscale, the leading cryptocurrency asset manager, also filed for a Dogecoin ETF.
First Dogecoin ETF
Meanwhile, the very first Dogecoin ETF is set to go live on Sept. 11. The launch of Rex-Osprey DOGE ETF (DOJE) will mark a significant milestone for the meme coin's institutional adoption, potentially kicking off a new era of cryptocurrency investment.
However, it is worth noting that this is not a typical DOGE ETF since it will not offer direct exposure to the leading meme coin. Instead, the product relies on the 40 Act structure to avoid the typical approval process. Investors will gain exposure to a Cayman Island-based subsidiary that holds the meme coin via various instruments.
Earlier this year, as reported by U.Today, a Solana ETF with a similar structure was also rolled out by Rex-Osprey.
Dogecoin's resilience
Despite the snub, Dogecoin is currently one of the major altcoins that are in the green. It is up by 0.8%, with its market cap currently sitting at $4.25 billion.
The launch of the first DOGE ETF is already a huge deal for the meme coin world, which explains why DOGE is outperforming Bitcoin.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team