Wall Street Doubts Dogecoin Spot ETF, Grayscale Launches GDOG

Grayscale submitted an S-1 filing to the U.S. Securities and Exchange Commission for a spot Dogecoin ETF under the GDOG ticker. Coinbase Custody will protect DOGE holdings through a passive ETF structure. DOGE is trading at $0.23; despite the increasing number of meme coin ETF applications, there has been no price increase.

The filing renames the current Grayscale Dogecoin Trust to the new Grayscale Dogecoin Trust ETF. It will also allow investors to gain exposure to Dogecoin (DOGE) without directly holding the tokens.

Under the pro-cryptocurrency Trump administration, the SEC is weighing dozens of cryptocurrency ETF applications, and this ETF proposal is being considered alongside similar applications from Rex-Osprey and Bitwise.

Dogecoin (DOGE) did not rise in response to this news, trading at $0.23, down 2.3% over the past week.

Coinbase Custody is designated as the sole asset holder.

Grayscale has chosen Coinbase Custody Trust Company to safeguard the Dogecoin holdings for the ETF, which will serve as the sole asset of the trust.

This includes price volatility of Dogecoin (DOGE), regulatory uncertainty, and future competition from other digital assets. The ETF proposal aligns with the revised listing standards of the New York Stock Exchange, which will take effect on January 31.

Meme Coin ETF Competition Intensifies

Bitwise submitted its own Dogecoin ETF application at the end of January, also designating Coinbase Custody as the proposed asset custodian.

Multiple documents indicate growing institutional interest in accessing meme coins through regulated investment products.

In a more favorable regulatory environment under the current administration, the SEC is reviewing various cryptocurrency ETF proposals covering tokens like Solana and XRP.

Since its launch, Grayscale's existing Dogecoin Trust has provided institutional investment for DOGE, but the ETF structure will offer investors better liquidity and may reduce fees.

Dogecoin's lack of price reaction to the ETF application starkly contrasts with the typical response of other cryptocurrencies to institutional adoption news.