Bitwise Asset Management's Dogecoin ETF Has Moved a Step Closer to Launch

Bitwise Asset Management's Dogecoin exchange-traded fund has moved a step closer to launch, with NYSE Arca filing a 19b-4 proposal to list and trade its shares.

Bitwise Asset Management's step-up in launching its Dogecoin exchange-traded fund has taken another step forward, with NYSE Arca filing a 19b-4 proposal to list and trade the shares.

According to a March 3 filing, the proposed rule change would permit the exchange to offer the Bitwise Dogecoin ETF, providing investors with exposure to the memecoin on the New York Stock Exchange subsidiary.

The ETF, which will trade under the ticker symbol "DOGZ," is structured as a Delaware statutory trust and will be managed under a trust agreement, with Bitwise acting as the sponsor.

The goal of the fund is to track the value of Dogecoin, which is subject to a price adjustment for the fund's operational costs, with NAV calculations being tied to a pricing benchmark from CF Benchmarks Ltd.

Instead of using derivatives, the ETF will directly hold Dogecoin, with only minimal cash reserves being used for operational purposes. Any fees, including Bitwise's management fee, will be paid in Dogecoin.

The trust agreement also disclaims any interest in, or title to, any digital asset other than Dogecoin, despite the possibility of the fund receiving small amounts of other cryptoassets due to forks, airdrops, or other similar events.

The fund will use a cash creation and redemption structure, meaning that investors will not be able to make direct contributions of Dogecoin to the fund or redeem shares of the fund for Dogecoin.

Coinbase (NASDAQ:) has been named as the fund's Dogecoin custodian, while the Bank of New York Mellon will provide cash custody, administration, and transfer agency functions for the fund.

Bitwise first filed for registration of the Bitwise Dogecoin ETF in late January, and followed up with an S-1 registration with the SEC on January 28.

The move comes as several other firms are also applying to launch similar products, with Rex Shares and Osprey Funds also submitting filings for Dogecoin ETFs. Grayscale (NYSE:) has also applied to launch an ETF that would provide exposure to the trust's existing holdings of Litecoin (CRYPTO: LTC). The commission acknowledged Graysacle's application on February 13.

Earlier this year, Bitwise also submitted its S-1 for an Aptos (CRYPTO: APT) ETF to the Delaware Department of State, on February 27.