Memecoins

Bitwise Files for Spot Dogecoin ETF as Market Optimism Grows

The contest to secure a position in the Dogecoin Exchange-Traded Fund (ETF) is intensifying, as Bitwise has now come into the fray and filed for regulatory approval.

Clearly, a number of financial institutions have already identified and cashed in on the potential of the meme coin to function as a serious and investable crypto asset. And they’re not shy about making that point.

Polymarket shows a 56% chance that a Dogecoin ETF gets the green light this year. The crypto industry is now all a-twitter with guesses about what that might mean for Doge’s future—specifically, its adoption, valuation, and now potentially its mundane-day-to-day-legal-entity existence.

Bitwise Joins the DOGE ETF Race

One of the cryptocurrency asset management firms, Bitwise, has progressed substantially in the effort to introduce Dogecoin to the regulated investment arena. On January 22, the firm filed documents in Delaware to register an entity for an investment product. The presence of those documents, along with the latest updates to those same documents, seems to strongly indicate the firm’s effort to get this Dogecoin ETF off the ground.

Recently, Bitcoin and Ethereum ETFs have taken center stage in conversations about cryptocurrency regulation and investment vehicles. Yet, for several reasons, Dogecoin’s move into the ETF space is especially significant.

– First ETF Proposal for a Meme Coin: Approval would mean the establishment of the first-ever spot ETF for a meme coin, and it could be a precursor to other, similar financial products being introduced to the market.

– Mainstream Legitimacy: A DOGE ETF receiving approval could aid Dogecoin in ridding itself of the “joke currency”and in coming to be seen as a legitimate digital asset.

– Expanded Access for Institutions: An exchange-traded fund would give institutional investors a way to invest in Dogecoin without needing to own it directly.

The source material is Osprey Funds and Rex Shares have filed their own applications, and now the competition is stepping up. These firms are betting that regulators will eventually acknowledge the rising market presence of Dogecoin and will permit investors to use it as a part of their traditional financial portfolios.

DOGE’s Growing Market Presence

Even though it started out as a lighthearted joke, Dogecoin has steadily secured itself in the cryptocurrency market. It now boasts a market cap of $47 billion and an average daily trading volume that exceeds $1 billion.

Several key factors have fueled the crypto’s popularity:

1. Growth Driven by the Community: Dogecoin has one of the largest and most engaged communities in cryptocurrencies, with influential proponents such as Elon Musk frequently promoting the token.

2. Payment Adoption: Companies such as Tesla have adopted DOGE as a method of payment, providing it with real-world use and utility.

Whale Accumulation: DOGE is seeing accumulation by large-scale investors, which is a strong indicator of confidence in the asset’s long-term potential.

Related Post

Whales Accumulate 460 Million DOGE During Price Dip

As a Dogecoin ETF becomes more and more talked about, on-chain data is showing us that huge investors (whales) have been buying up massive amounts of DOGE. Crypto analyst Ali Martinez reported that whales bought 460 million DOGE during a recent price dip.

This aggressive accumulation indicates that institutional or high-net-worth investors are essentially betting on a significant and imminent price increase, probably as a result of one or more of the following: ETF approval, which we’ve already discussed; continuing “mainstreaming,” for lack of a better word, of Bitcoin and possibly other cryptocurrencies; or their own, superior, crystal ball gazing.

Price increases for Dogecoin often seem to follow two different but related scenarios. Sometimes, capital inflows from whales cause the price to rally, as we just discussed. Other times, regulatory approval for a DOGE ETF could cause a price rally. The latter could happen as follows: An influx of institutional capital could push Dogecoin to new price heights.

What’s Next for the DOGE ETF?

The approval odds for a spot Dogecoin ETF in 2024 have surged to 56%, but that doesn’t mean it’s free and clear. The SEC has consistently been a cautious regulator, especially when it comes to approving anything involving a meme coin. Cite the SEC’s own reasons, and they may seem perfectly reasonable: They’re concerned about the potential for volatility and the kind of investor protections that aren’t quite as ironclad as they would like.

Yet, the approval of Bitcoin and Ethereum ETFs sets an important precedent. If regulators acknowledge Dogecoin’s liquidity, widespread use, and sturdy market, an ETF approval could be a real turning point for the cryptocurrency market.

A Dogecoin ETF could, if approved:

– Attract institutional capital to enhance liquidity and minimize volatility.

– Make Dogecoin a credible player in the digital asset world.

– Propel even more adoption, as both retail and institutional investors have easier access.

Conclusion: A Potential Turning Point for Dogecoin

Bitwise’s application for a spot Dogecoin ETF is pivotal in the progression of meme coins into the category of investable commodities. Several other firms are also looking to apply for this same ETF, and accumulation by large investors (whales) is happening as we speak. Accumulation and ETF filings typically lead to substantial price increases in the cryptocurrency world, so look for developments in the next few months.

Should the ETF be given the go-ahead, Dogecoin could attain a whole new level of legitimacy in the financial world. It might move from being largely an undemanded, unserious meme coin to something much more sought after, with lots of large institutional players showing a much larger interest in it. And thus a higher price. And lots of people think that regulatory body’s bonafides will be better, too—that is, they will be less sketchy—once they start approving all these crypto ETFs.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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Image Source: caspian81/123RF // Image Effects by Colorcinch

Will Izuchukwu

Will is a News/Content Writer and SEO Expert with years of active experience. He has a good history of writing credible articles and trending topics ranging from News Articles to Constructive Writings all around the Cryptocurrency and Blockchain Industry.

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