Potential Impact of Dogecoin ETF on Crypto Price and Market

Updated

May 5, 2025

Gambar Potential Impact of Dogecoin ETF on Crypto Price and Market

Jakarta, Pintu News – Dogecoin , a cryptocurrency originally known as the “meme coin”, is now in the spotlight after Nasdaq applied to list the 21Shares Dogecoin ETF. The move has sparked speculation about the ETF’s potential impact on the price of DOGE and the dynamics of the crypto market as a whole. This article will take a neutral and informative look at these developments.

Dogecoin ETF filing by Nasdaq and 21Shares

On April 30, 2025, Nasdaq filed a 19b-4 form with the US Securities and Exchange Commission (SEC) to list a Dogecoin ETF managed by 21Shares. The ETF is designed to track the price of DOGE directly without the use of leverage or derivatives, with Coinbase Custody Trust as the authorized custodian.

This filing follows an S-1 listing by 21Shares on April 10, 2025, in collaboration with the House of Doge, the corporate arm of the Dogecoin Foundation. This move marks a serious attempt to bring DOGE into the broader realm of institutional investment.

The SEC has set a deadline of June 15, 2025 for a decision on the Dogecoin ETF filings by Bitwise and Nasdaq. Although there has been no official approval, the filing has increased investor interest in DOGE, reflected by a significant increase in price and trading volume. An approved ETF could open up access for institutional and retail investors to invest in DOGE through regulated channels, increasing the legitimacy and adoption of this cryptocurrency.

Also Read: Ripple (XRP) Moves $1.1 Billion, What Happened?

Potential Impact of ETFs on Dogecoin Price

Since the launch of the Bitcoin ETF in January 2024, the product has attracted more than $40 billion in assets under management. If the Dogecoin ETF manages to attract 30% to 50% of the Bitcoin ETF inflows, then DOGE could receive an additional $12 billion to $20 billion. With DOGE’s current market capitalization of around $24 billion, such an injection of funds could double or even triple DOGE’s market value.

These estimates suggest that the price of DOGE could increase by up to $0.34 to $0.50 if it receives such inflows. This reflects a potential gain of 95% to 190% from the current price. However, it is important to note that these projections are speculative and depend on various market factors, including investor demand and macroeconomic conditions.

Market Reaction and Investor Sentiment

Following the ETF filing by Nasdaq, the price of DOGE rose 2.3% in the last 24 hours, breaking through the $0.17 resistance level (approx. IDR 2,784). In the past week, DOGE recorded a 5% gain, surpassing the performance of Bitcoin and Ethereum in the same period. The increased trading volume indicates the market’s anticipation of the potential ETF approval and its impact on DOGE’s price.

Market analysts note that the ETF approval could change the perception of DOGE from a mere “meme coin” to a legitimate investment asset in institutional portfolios. This could increase the adoption of DOGE among investors who have previously been reluctant to invest in cryptocurrencies that lack structured investment products such as ETFs.

Further Implications for the Crypto Market

The approval of the Dogecoin ETF could pave the way for similar ETFs for other cryptocurrencies, such as Ripple and Solana , which are also in the process of applying for ETFs. This demonstrates the growing trend of integrating cryptocurrencies into the traditional financial system through regulated investment products.

However, it is important to consider that ETF approval does not guarantee sustained price increases. Factors such as government regulations, global economic conditions, and overall market sentiment still play a significant role in determining the direction of cryptocurrency prices.

Conclusion

The filing of the Dogecoin ETF by Nasdaq and 21Shares marks a significant step in the effort to bring cryptocurrencies into the financial mainstream. While the potential impact on the price of DOGE and the crypto market as a whole is promising, investors should remain cautious and consider the risks associated with investing in digital assets. These developments reflect the evolution of the crypto market as it continues to adapt to the needs and expectations of modern investors.

Also Read: Worldcoin: Innovating Digital Identity Verification Through Iris Scanning

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

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