Grayscale has filed a Form S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) to launch the Grayscale Dogecoin Trust ETF. The trust aims to provide investors access to Dogecoin without the need to own the cryptocurrency. If approved, it will trade on the New York Stock Exchange (Arca) under the symbol GDOG.
The filing with the SEC indicates that the trust will hold Dogecoin as its sole asset, with Coinbase Custody Trust Company as the custodian. It will issue and redeem shares in large blocks called "Baskets," each consisting of 10,000 shares. Initially, these will be managed through cash transactions instead of in-kind transfers of DOGE.
The value of the Dogecoin ETF will reflect CoinDesk's Dogecoin reference rate. It indicates the market price of DOGE without commissions or obligations. The trust will not actively trade nor use leverage or derivatives, but will operate passively.
The proposal for the Dogecoin ETF aligns with the New York Stock Exchange (NYSE) application guidelines as of January 31, 2025, for approval of its listing. Since this application has not yet been approved, Grayscale indicates that it will not proceed with the offering of shares for the Dogecoin ETF until it is approved.
This application adds to a previous request by Grayscale for an IPO in the U.S. during the week of cryptocurrencies. If the SEC approves this trust, the Grayscale Dogecoin Trust ETF could become a benchmark for investments in DOGE. This could impact institutional investors' participation in the meme coin market.
The risk factors identified in the trust's filing include sharp changes in the price of DOGE, uncertainty regarding regulation, and potential competition with other digital assets.