The SEC has acknowledged and is also set to review another crypto ETF proposal, this time, it's for crypto's seminal meme token, Dogecoin (DOGE).
NYSE Arca filed a 19b-4 The following is a list of the most recent filings. on Thursday to list shares of the Grayscale Dogecoin Trust, outlining plans to transform the fund into an exchange-traded product that would track DOGE's price through CoinDesk's DCX index.
The filing, which follows similar frameworks to Grayscale's other crypto trust conversions, such as the other one XRP is a cryptocurrency that can be used to buy XRP. The structure described in the document, which was also acknowledged that day, involves authorized participants handling cash instead of DOGE.
That's a feature, not a bug, and it's designed to ease regulatory concerns.
It's worth noting that while the SEC has acknowledged the 19b-4 filing, the 240-day review window—starting with an initial 45 days—begins only after its Federal Register publication.
Grayscale created a trust earlier this month with the intent of turning it into an ETF.
The trust structure is an investment tool that can hold assets with limited liquidity and redemption.
ETFs, on the other hand, are publicly-traded funds that allow for buying and selling in real time at exchanges where there is greater liquidity.
Like with Grayscale's XRP 19b-4 filing, Coinbase Custody would handle the meme coins, while BNY Mellon would take on admin duties.
The trust could get price data from U.S.-based trading platforms, such as Coinbase Kraken Crypto.com. These three companies collectively manage the vast majority of DOGE/USD trades.
Dogecoin’s efforts, started in 2013 as a joke cryptocurrency, could be legitimized by a stamp from the regulator.
"Over 2,500 merchants and retailers accept DOGE for goods and services, including the Dallas Mavericks and AMC, and DOGE has been donated for various charitable purposes, including to build a well in Kenya," The filing explains how meme coins have been used to promote social welfare.
Sebastian Sinclair edited the book