Grayscale Seeks Big Breakthrough: Amended S-1 Filed To Convert Dogecoin Trust Into GDOG ETF
Grayscale Investments, one of many largest digital asset administration corporations on the planet, has made one other daring transfer within the crypto ETF area. The firm not too long ago submitted an amended S-1 registration assertion to the US Securities and Exchange Commission (SEC), this time for its Dogecoin product.
The filing reveals Grayscale’s intention to transform its current Grayscale Dogecoin Trust (GDOG) right into a Spot Dogecoin exchange-traded fund (ETF), a transfer that will give the meme coin an unprecedented degree of publicity amongst institutional buyers.
Grayscale’s Pursuit Of A Dogecoin ETF
Grayscale has consistently been at the forefront of pushing crypto merchandise into the mainstream. Long earlier than the launch of Spot Bitcoin ETFs, the digital asset-focused funding platform was one of many first corporations to introduce other investment products that gave institutional buyers publicity to cryptocurrencies.
Grayscale’s Bitcoin and Ethereum merchandise have been transformed to Spot Bitcoin ETFs, and now the corporate is now taking the identical playbook to the subsequent largest belongings. According to a latest submitting with the US SEC, Grayscale is now seeking to convert its current Grayscale Dogecoin Trust (GDOG) right into a Spot Dogecoin exchange-traded fund (ETF). Grayscale has managed this DOGE Trust since 2021 and the most recent submitting, if authorized, will convert it to the general public ETF format.
The conversion of the Grayscale Dogecoin Trust right into a Spot ETF would make DOGE publicity obtainable to a broader vary of buyers, together with those that will not be snug holding crypto immediately. According to the S-1 submitting, the proposed Dogecoin ETF can be listed on NYSE Arca underneath the ticker ‘GDOG.’
The ETF will monitor the worth of DOGE based mostly on the CoinDesk DOGE Reference Rate, which sources pricing from main exchanges together with Kraken, Gemini, Coinbase, and Bitstamp. Grayscale has additionally chosen Coinbase to function the official custodian of the DOGE held by the ETF. The submitting additionally specifies that ETF shares will probably be created and redeemed in blocks of 10,000 shares, often known as “Baskets.”
Market Impact And What Comes Next
Grayscale’s transfer right into a Spot Dogecoin ETF comes throughout a interval when buyers are on the outlook for the subsequent crypto ETF that can hit the market. Grayscale already has pending applications to transform its Cardano and XRP Trusts into Spot ETFs, however these are yet to be approved.
As it stands, there isn’t any particular deadline for the SEC to present its approval. The nature of the S-1 submitting means the company will overview the submitting, situation remark letters, and watch for the issuer to reply with amendments till it’s glad.
Billions of {dollars} have already flowed into Bitcoin and Ethereum through their Spot ETFs. If Grayscale’s submitting is authorized, Dogecoin could be the next benefactor of those institutional inflows. Institutional buyers, who’ve largely stayed away from meme cash, would have a regulatory-compliant channel to achieve publicity to Dogecoin.
At the time of writing, Dogecoin was buying and selling at $0.265.
Featured picture from Unsplash, chart from TradingView
