Bullish! Bitwise Applied for Dogecoin ETF
Dogecoin boasts a market capitalization exceeding $51.98 billion, solidifying its position as the world's largest memecoin.
Bitwise Asset Management applied for a Dogecoin exchange-traded fund (ETF) submitted yesterday and listed on Delaware’s Department of State Division of Corporations, the “Bitwise Dogecoin ETF”.
The application follows similar filings from Rex Shares and Osprey Funds, pointing at a growing momentum toward legitimizing Dogecoin through traditional financial channels.
However, securing approval from the US Securities and Exchange Commission (SEC) would represent a landmark achievement, bestowing a level of legitimacy upon Dogecoin that could attract a significant influx of conservative investors.
Bitcoin market inflows totaling approximately $50 billion make this particularly relevant. Analysts suggest that increased demand, spurred by ETF approval, could propel Dogecoin’s price upwards.
Dogecoin Market Cap Surge
Currently, Dogecoin boasts a market capitalization exceeding $51.98 billion, solidifying its position as the world’s largest memecoin.
Furthermore, its price has more than tripled over the past year, fuelled by speculative interest and recent developments, most notably the establishment of the Department of Government Efficiency (D.O.G.E.) under President Donald Trump.
This agency, spearheaded by Elon Musk, aims to streamline government operations and reduce costs. Further stimulating market speculation was a brief, now-removed, appearance of the Dogecoin logo on the D.O.G.E. website.
Despite its origins as a lighthearted cryptocurrency created in 2013, Dogecoin has achieved remarkable growth, securing a position as the seventh-largest cryptocurrency by market capitalization, currently valued at approximately $54 billion.
An Unstoppable Trend?
Industry experts, such as Nate Geraci, President of ETF Store, have noted the surprising delay in Dogecoin ETF applications, highlighting the asset’s substantial market presence and suggesting that even an unsuccessful application could serve as valuable marketing for the issuer.
The recent filings by Bitwise, Osprey Funds, and Rex Shares coincide with the SEC’s formation of a new crypto task force under Hester Peirce.
This development is widely interpreted as potentially accelerating the approval process for a wider range of crypto ETFs, including Dogecoin and other prominent cryptocurrencies such as Solana (SOL), XRP, Litecoin (LTC), and Polkadot (DOT).
The current bearish correction observed in the DOGEUSD price on the H1 chart, while noteworthy, does not necessarily negate the potential long-term implications of a successful ETF launch. Traders should monitor the price action around the 0.33800 support level and the bearish trend line for short-term directional cues. The long-term outlook, however, hinges significantly on regulatory approval.