Nasdaq seeks SEC approval to launch Dogecoin-ETF

Nasdaq has filed an application with the US Securities and Exchange Commission (SEC) to list and trade shares of the 21Shares Spot Dogecoin exchange-traded fund (ETF). According to CoinMarketCap, this is an important step toward accepting this cryptocurrency in the regulated investment space.

The proposed fund will provide traders with passive access to the coin by tracking a Settlement Price Index, the website reports. This will prevent them from resorting to speculative trading methods, such as leverage or derivatives.

The Dogecoin ETF aims to offer institutional and retail investors a convenient, regulated way to access the coin, bypassing the complexity and risks associated with holding it on crypto exchanges. The SEC is currently reviewing more than 70 applications for cryptocurrency ETFs. Last year, the commission approved funds for Bitcoin and Ethereum.

Dogecoin has a market capitalization of about $26 billion. Its blockchain enables faster and cheaper transactions with higher bandwidth than Bitcoin. CoinMarketCap emphasizes that the launch of a DOGE ETF will increase investor access to the asset and reduce its price volatility.