On February 1, 2025, Grayscale announced its intention to convert its newly launched Dogecoin Trust into an exchange-traded fund (ETF). This move comes as Grayscale joins other asset managers in the race to establish a Dogecoin ETF in the united states, signaling increased interest in cryptocurrency investment products.
- Grayscale launches Dogecoin Trust for investors.
- Trust aims to convert to Dogecoin ETF.
- SEC application filed for ETF listing.
- Dogecoin whales accumulate 560 million DOGE.
- DOGE trading volume increases by 36.68%.
- Dogecoin ranks eighth largest cryptocurrency.
Grayscale’s new Dogecoin Trust aims to provide investors with exposure to the DOGE cryptocurrency. Following the announcement, Grayscale filed a form 19-4b with the SEC to list and trade shares of the Trust, which is currently a private investment vehicle traded on the over-the-counter market. If approved, it will transition to an ETF, which trades on public exchanges. The Trust is sponsored by Grayscale Operating LLC and Grayscale Investment Sponsors LLC, with Digital Currency Group serving as the trustee. Coinbase Custody will act as the custodian, while the Bank of New York Mellon will serve as the administrator and transfer agent.
Grayscale’s application adds to a growing list of asset managers, including Bitwise, Rex Shares, and Osprey Funds, who are also seeking to launch a Dogecoin ETF. The recent political climate, including Donald Trump’s return to the White House and changes in SEC leadership, has led to heightened optimism among asset managers about the potential for crypto ETFs. This optimism is reflected in the increasing number of applications for investment funds tied to various cryptocurrencies, including Litecoin, Solana, and XRP.
In addition to Grayscale’s developments, Dogecoin whales have been actively accumulating the cryptocurrency, purchasing 560 million DOGE valued at approximately $185.4 million in the past week. This surge in buying activity follows a recent market selloff, indicating renewed interest and confidence among larger DOGE holders. At the time of reporting, Dogecoin is trading at $0.3279, with a market cap of nearly $50 billion, making it the eighth largest cryptocurrency and the largest memecoin.
Grayscale’s move to convert its Dogecoin Trust into an ETF highlights the increasing momentum in the cryptocurrency investment space. As multiple asset managers vie for approval, the outcome could significantly impact the availability and perception of cryptocurrency investment products in the broader market.
