21Shares has taken a significant step forward with amendments to its upcoming Dogecoin ETF, recently submitting its fifth update to the U.S. Securities and Exchange Commission (SEC). The fund, which will carry the ticker TDOG upon its expected debut on Nasdaq, aligns with concurrent initiatives by Grayscale and Bitwise. The prospective launch has already sparked market enthusiasm, driving Dogecoin’s price up by over 11%.
ETF Fee and Custody Arrangements
The ETF will charge a management fee of 0.50%, which will accrue daily and be settled weekly in Dogecoin. Although a fee waiver option hasn’t been established yet, 21Shares is anticipated to address this prior to the official launch. A “delaying amendment” clause is included, allowing the procedure to progress under section 8(a) of the SEC.
Financial and operational duties for the ETF will be shared among notable firms. Bank of New York Mellon is appointed as the administrator, cash custodian, and transfer agent, with Anchorage Digital Bank and BitGo as supplementary custodians. Wilmington Trust NA will fulfill the role of trustee, Foreside Global Services will serve as the marketing agent, while Cohen & Company will undertake auditing responsibilities.
Dogecoin Price Outlook
Following the announcement, DOGE experienced a remarkable 11.4% surge within 24 hours, pushing its value to $0.15. This was accompanied by a 32% jump in daily trading volume. Despite not surpassing the 50 and 200-day moving averages, the price breaking above the trend line suggests growing optimism.
CoinGlass reports an 8% increase in open positions in Dogecoin futures, now totaling $1.5 billion. Open interest has also seen an upward trend, with a 1.5% increase on Binance, 1.64% on OKX, and 1.26% on Bybit. These increases indicate robust interest in derivatives trading for Dogecoin.
“Our mission is to make cryptocurrency investments more accessible while enhancing investor confidence,” shared a spokesperson from 21Shares.
With TDOG poised to commence trading alongside Grayscale’s GDOG and Bitwise’s BWOW ETFs this month, the move is likely to attract increased institutional interest in Dogecoin. Key indicators bolster a positive outlook, potentially influencing further price dynamics.
Key ETF Details
- •ETF Management Fee: 0.50% (paid weekly in Dogecoin)
- •Initial Capital: $1.5 million for DOGE acquisition
- •Key Partners: Bank of New York Mellon, Anchorage Digital Bank, BitGo
- •Market Impact: 32% spike in DOGE trading volume
- •Futures Growth: 8% rise in open positions
Reflecting these strategic developments, indicators hint at a buoyant market outlook for Dogecoin. The evolving interest surrounding the ETF and its partners underscores the potential for biting into a growing market segment, raising anticipation for institutional participation in crypto investments.