Dogecoin ETF Filing Sparks Interest, but Prices Drop Over 12%—What’s Next?

• NYSE Arca’s filing signals growing institutional interest in Dogecoin ETFs.
• Dogecoin price drops despite ETF filing, reflecting broader market volatility.
• Altcoin ETF applications surge as regulatory stance shifts toward crypto funds.

The cryptocurrency market presented a mixed picture following a significant development: NYSE Arca, associated with the New York Stock Exchange, submitted a filing to the SEC to list a Bitwise Dogecoin ETF. 

While this exchange-traded fund could potentially offer both institutional and retail investors regulated access to Dogecoin, the immediate market reaction was unexpectedly negative.

This juxtaposition of events is noteworthy. The ETF filing indicates a continuing interest in memecoins, even considering the inherent market volatility. Also, this filing aligns with a broader trend of financial institutions pursuing regulatory authorization for crypto-related investment products. Nevertheless, Dogecoin’s price experienced a downturn, contrasting with the anticipated bullish sentiment.

Regulatory Filing Announced, Market Response Defies Expectation

NYSE Arca filed a 19b-4 form with the SEC on March 3, seeking approval to list and trade shares of the Bitwise Dogecoin ETF. The significance of this action lies in the potential for investors to gain exposure to Dogecoin through a regulated investment vehicle, without direct management of the underlying cryptocurrency. The ETF structure is based on cash creation and redemption, circumventing direct Dogecoin transactions. 

Coinbase will serve as the fund’s custodian for Dogecoin, while the Bank of New York Mellon will manage cash custody, transfer agency, and administrative functions. 

Related: Meme Coin Mania: Pepe (PEPE) Outperforms Dogecoin and Shiba Inu

Moreover, Bitwise had already submitted an S-1 registration form in January, signaling its intent to launch the ETF. Consequently, approval of this ETF could mark a significant step toward mainstream adoption of memecoins in financial markets.

Dogecoin Price Retreats Despite ETF Filing Momentum

In spite of the ETF filing, Dogecoin’s price dropped over 12%, falling to $0.193588. This decline erased gains made following Donald Trump’s crypto reserve announcement on March 2. The overall cryptocurrency market also witnessed a decline, contributing to Dogecoin’s subdued performance. 

Additionally, the SEC is reviewing a separate Grayscale Dogecoin Trust application, with a potential decision expected by mid-October. Institutional interest in Dogecoin has increased, but market sentiment remains volatile.

According to Coincodex analysis, Dogecoin is expected to trade between $0.253801 and 

$0.314466 by year-end. This projection suggests a 43.62% price appreciation from current levels, predicated on an average December price of $0.276116. 

Based on these forecasts, DOGE investors could potentially realize profits of 63.57%.

Altcoin ETF Filings Continue to Rise, Market Signals Mixed

The Bitwise Dogecoin ETF is part of a wider trend where issuers are seeking approval for various altcoin-based funds. 

On March 3, the Nasdaq filed a proposal with the SEC to list and trade shares of the Grayscale Hedera Trust, which will track the price of HBAR. 

Besides, Nasdaq previously submitted an application for a similar Hedera-based product from Canary Capital. Several other issuers have filed for ETFs tracking Cardano, Solana, Polkadot, Litecoin, and XRP.

Related: Dogecoin ETF: Why Bitwise’s Matt Hougan Believes This Meme Coin Deserves a Spot

This surge in applications follows a shift in regulatory stance, as authorities appear more open to crypto-based financial products. However, the SEC’s final decisions on these ETFs will significantly influence the market’s direction in the coming months.