Key figures: Dogecoin (DOGE) trading around $0.074 USD; Bitwise’s spot NEAR ETF launched in June 2024; SEC denied the proposed Dogecoin ETF in March 2024; Bitwise announced a new AI‑focused investment strategy in Q3 2024.
Context
The Bitwise CEO called the rejection of a Dogecoin‑based exchange‑traded fund “tragic,” suggesting a disconnect between institutional investors who buy ETFs and retail crypto‑app users who trade DOGE daily. The comment comes on the heels of Bitwise successfully launching a spot NEAR ETF, positioning itself as a pioneer in crypto‑ETF offerings. However, the SEC’s continued resistance to meme‑coin ETFs highlights regulatory caution, especially after recent denials of similar proposals (e.g., Bitcoin and Ethereum futures ETFs earlier this year). Bitwise’s pivot to AI‑driven products may be an attempt to diversify away from the regulatory bottleneck.
Bottom Line
- Capital: Institutional capital remains wary of meme‑coin ETFs, limiting inflows into DOGE‑related products. Bitwise’s AI push could attract a different investor set, but it won’t immediately offset the missed DOGE ETF capital.
- Sentiment: The headline overstates the “tragic” narrative; the market already priced in regulatory headwinds for meme‑coin ETFs. Expect modest short‑term bearish pressure on DOGE.
- Assets: DOGE likely to stay range‑bound or dip slightly; NEAR may benefit from the newly launched ETF, while Bitwise’s AI initiatives could boost its BITW ticker if they gain traction.