TLDR
- 21Shares filed an S-1 registration with the SEC for a spot Dogecoin ETF, joining Bitwise, REX Shares, and Grayscale in seeking approval
- Dogecoin (DOGE) price surged 8-12% following the filing, trading above $0.15
- 21Shares partnered with House of Doge, the Dogecoin Foundation’s corporate arm, for marketing support
- Coinbase Custody Trust will serve as the custodian for the proposed ETF
- Analysts estimate a 64-75% chance that the SEC will approve a spot Dogecoin ETF this year
Dogecoin prices jumped between 8-12% on Wednesday, April 9, pushing the popular meme cryptocurrency above the $0.15 mark.
This price surge followed asset manager 21Shares filing an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) to launch a spot Dogecoin exchange-traded fund (ETF).
The filing makes 21Shares the latest entrant in a growing list of companies seeking regulatory approval for Dogecoin investment products in the United States. Competitors Bitwise, REX Shares, and Grayscale have already submitted applications for similar offerings.
Currently, Dogecoin ranks as the eighth-largest cryptocurrency with a market capitalization of $24.2 billion. The coin was created in 2013 as a joke and is a fork of Lucky Coin, which itself is a fork of Bitcoin.
DOGE Price
ETF Structure and Partnerships
According to the S-1 filing, the proposed 21Shares Dogecoin ETF would track the CF Dogecoin-Dollar Settlement Price (DOGEUSD_RR). This structure would allow investors to gain exposure to Dogecoin price movements without directly owning the cryptocurrency.
21Shares has designated Coinbase Custody as the custodian for the ETF’s assets. The company described the fund as a passive investment vehicle that does not seek returns beyond tracking Dogecoin’s price.
The asset manager also announced a strategic partnership with House of Doge, the corporate arm of the Dogecoin Foundation. This partnership aims to support fund marketing initiatives.
“Registered investment vehicles are essential for broadening access to digital assets, and Dogecoin’s growing adoption underscores its importance in the crypto ecosystem,”
said Duncan Moir, President at 21Shares, highlighting the fund’s relevance in their expanding portfolio of crypto ETF offerings.
While the S-1 registration marks an important first step, 21Shares must still submit a 19b-4 filing to formally begin the SEC approval process. The company has not yet specified a ticker symbol, fee structure, or listing exchange for the proposed ETF.
Increasing Competition for Memecoin ETFs
The rush of Dogecoin ETF applications reflects what Bloomberg ETF analyst James Seyffart described in February as a “spaghetti cannon approach.” This strategy involves issuers testing which products might receive approval under changing regulatory conditions.
Seyffart and fellow Bloomberg analyst Eric Balchunas estimate a 75% chance that the SEC will approve a spot Dogecoin ETF this year. Betting platform Polymarket currently places those odds at 64%.
This development comes as part of 21Shares’ broader strategy to expand its crypto ETF offerings. The company currently offers spot Bitcoin and Ether funds, and has previously filed for spot Polkadot and XRP ETFs.
Political Climate and Market Sentiment
The current political environment in the United States may favor cryptocurrency ETF approvals. The Trump administration has shown support for the crypto sector, with the president recently implementing a 90-day tariff suspension affecting 75 countries.
This policy shift coincided with a 12% increase in the overall cryptocurrency market. The memecoin sector specifically jumped over 12% following the tariff pause announcement.
Some market watchers have noted Elon Musk’s influence in the current administration. As a well-known Dogecoin supporter and the inspiration behind the Department of Government Efficiency (D.O.G.E.), Musk’s presence has led to speculation that a Dogecoin ETF approval might find favor in the current regulatory climate.
While DOGE has seen recent gains, on-chain data from Glassnode indicates that only 50.8% of Dogecoin’s supply is currently “in profit.” This means slightly over half of the coins in circulation are valued higher than when they were last transferred.
The nearly equal split between profitable and unprofitable positions suggests a neutral investor base with balanced incentives to either hold or sell.
Despite the recent price surge, DOGE remains down in weekly and yearly timeframes, with losses of 5% and 17%, respectively. The cryptocurrency has experienced notable volatility in recent months, falling from a peak of $0.4835 to as low as $0.1315 before its current recovery.
Beyond its U.S. ETF efforts, 21Shares has expanded its Dogecoin products internationally. The company launched a fully backed Dogecoin exchange-traded product on Switzerland’s SIX Swiss Exchange under the ticker “DOGE” with a 2.5% fee.
