Grayscale, a big name in crypto investing, is trying to make a Dogecoin ETF (exchange-traded fund). This would be a huge deal for Dogecoin, letting institutional investors – the big players – easily buy into it.
Grayscale’s Dogecoin Play
Grayscale has a history of getting crypto investments into the mainstream. They already successfully converted their Bitcoin and Ethereum trusts into ETFs. Now, they’re aiming for the same with their Dogecoin Trust (GDOG). This means transforming GDOG from a trust into a publicly traded ETF. This makes it much easier for more people to invest in Dogecoin, even those who aren’t comfortable directly holding the cryptocurrency.
The GDOG ETF: Details
The proposed Dogecoin ETF would trade on the NYSE Arca under the ticker “GDOG”. Its price will follow the CoinDesk DOGE Reference Rate, which uses prices from major exchanges like Coinbase and Kraken. Coinbase will also be the custodian, safely keeping the Dogecoin. The ETF will trade in blocks of 10,000 shares.
What’s Next? The SEC’s Decision
Grayscale’s move comes at a time when everyone’s looking for the next big crypto ETF. They also have applications pending for Cardano and XRP ETFs, but nothing’s been approved yet. The SEC will review Grayscale’s filing, ask questions, and wait for responses before making a decision. There’s no set timeline. If approved, this could bring a lot of money into Dogecoin, as it did for Bitcoin and Ethereum ETFs. This would be a big step for Dogecoin, giving institutional investors a regulated way to get involved. At the moment, Dogecoin is trading around $0.265.