Grayscale Investments has filed with the U.S. Securities and Exchange Commission (SEC) to convert its Dogecoin trust into a spot exchange-traded fund (ETF). The move follows the launch of the Grayscale Dogecoin Trust, which aims to provide institutional and accredited investors with safe exposure to Dogecoin. The filing is part of Grayscale’s broader strategy to expand its cryptocurrency offerings.
The company has previously filed similar applications to convert its Bitcoin and Ethereum trusts into ETFs. If approved, the Grayscale Dogecoin ETF could potentially skyrocket the price of DOGE. Bitcoin ETFs have seen $40.5 billion in capital inflows since their January 2024 launch.
If Dogecoin ETFs capture even 50% of these inflows, it could add $2.39 trillion to Dogecoin’s market capitalization. This would push Dogecoin’s total market valuation to $2.86 trillion, equating to a price of approximately $19.34 per DOGE, a 5,895% increase from its current price of $0.3226. However, there is no certainty that Dogecoin ETFs will attract such significant capital.
Grayscale’s Dogecoin ETF ambitions
The race to establish a Dogecoin ETF is heating up, with Bitwise recently filing an S-1 form with the SEC to launch its own Dogecoin ETF. Additionally, Wintermute, a key crypto market maker, had earlier predicted that a major asset manager would introduce a meme coin ETF in 2025, with Dogecoin as the likely candidate.
Grayscale believes that Dogecoin has evolved from being a memecoin into a tool for global financial inclusion, grassroots activism, and a viable means of payment. The company sees Dogecoin as a faster, cheaper, and more scalable derivative of Bitcoin, helping groups underserved by legacy financial infrastructure to participate in the financial system. The Grayscale Dogecoin Trust is now open for daily subscription by eligible individual and institutional accredited investors.
The Trust functions like Grayscale’s other single-asset investment trusts and is solely invested in the token underpinning the Dogecoin network. Grayscale’s filing has sparked optimism among investors, with some analysts predicting that DOGE could surpass the $1 mark and potentially reach $3.8 during a significant rally. However, historically, February has only recorded an average monthly gain of 0.81% for Dogecoin since its launch in 2013.
At the time of writing, Dogecoin is trading at around $0.32, down almost 1% in the last 24 hours, according to data from CoinMarketCap.