On September 19, Grayscale submitted an amended S-1 prospectus to the U.S. Securities and Exchange Commission (SEC) for the launch of a Dogecoin ETF. If approved, the fund will trade on NYSE Arca, with Coinbase acting as prime broker and custodian.
The exchange had previously filed an application to trade Grayscale Dogecoin Trust.
On the same day, NYSE Arca sent the SEC proposals to amend filings for Grayscale Ethereum Trust ETF and its mini version.
These steps coincided with a series of events in the market. On September 17, the SEC approved new listing standards for crypto funds designed to accelerate and simplify the registration process. The next day, the agency approved an application from REX and Osprey to launch their DOGE fund, the first U.S. instrument tracking the price of the largest memecoin.
In addition, Grayscale announced the launch of its multi-asset index, which includes BTC, ETH, SOL, XRP, and ADA.
Conditions for Admission
Under the new SEC rules, a digital asset must have a futures market on a regulated platform, such as Coinbase, operating for at least six months. Grayscale stated that trading of Dogecoin futures and options is already taking place on venues supervised by the Commodity Futures Trading Commission (CFTC).
The company also emphasized that GDOG does not fall under the Investment Company Act of 1940, which REX-Osprey applied to their products based on Solana and Dogecoin.
Grayscale added that the fund is not considered a commodity pool under the Commodity Exchange Act of 1936, and neither the company nor its trustees are subject to regulation by the CFTC as commodity pool operators or advisors.
The updated S-1 prospectus was signed by Grayscale Chairman Barry Silbert, other board members, and Chief Financial Officer Edward McGee in accordance with the rules of the Securities Act of 1933, which regulates the issuance of securities. The document describes the structure of the fund, management, and investment strategy.
Despite the new SEC clarifications, Grayscale does not plan to allow the in-kind redemption mechanism — the exchange of fund shares for underlying assets. This distinguishes GDOG from several recently approved products.
History of SEC Decisions
Under the administration of Joe Biden, the regulator approved spot Bitcoin ETFs, followed by Ethereum ETFs after a court ruling in favor of Grayscale, which had appealed the rejection of its first application.
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