Nate Geraci, president of ETF Store, has expressed surprise at the lack of applications for a Dogecoin spot ETF.
In a recent post on X, Geraci wondered what the problem would be with launching an exchange-traded fund based on Dogecoin, which has become one of the most popular cryptocurrencies on the market today.
According to Geraci, at worst, the request for this investment fund could be considered simply a marketing expense. “I wonder which issuer is sitting on the ticker ‘DOGE’,” he commented.
Geraci's comments reflect the growing curiosity and anticipation in the crypto market amid Dogecoin's remarkable rise to become the seventh-largest cryptocurrency by market cap.
From its humble origins as a meme, Dogecoin has proven to be more than just a joke, capturing the interest of investors and traders for its potential and active community.
Currently, Dogecoin surpasses, in terms of market capitalization, large companies and corporations such as Itaú, American International Group and Honda, according to the data surveyed on CompaniesMarketCap. This remarkable rise not only highlights the popularity of this meme cryptocurrency, but also suggests that the launch of an exchange-traded fund could open up exciting new opportunities for investors.
What is Dogecoin and how has it gained importance in the crypto market?
Dogecoins (DOGE) is a cryptocurrency that was born as a meme in 2013, based on the image of the Shiba Inu dog. However, what started as a joke has become a cryptocurrency with a market capitalization that places it in seventh place globally.
Dogecoin’s popularity has been driven by several factors, including the support of influential figures such as Elon Musk, who has promoted the coin on multiple occasions through his social media accounts. Additionally, the Dogecoin community is known for its friendly and charitable spirit, which has helped cement its presence in the cryptocurrency ecosystem. Thus, despite its playful nature, Dogecoin has proven to be an attractive investment option for many, with a loyal user base and consistent growth in value.
Source: CoinMarketCap
How SEC Changes Could Open the Door for a Dogecoin ETF?
In response to Geraci's comments about who might launch a Dogecoin spot ETF, many in the crypto community have pointed out that the impending Gary Gensler's departure of the SEC, scheduled for January 20, 2025, and the arrival of its successor, Paul Atkins, has generated optimism about possible changes in crypto regulation. This change in direction from the SEC could open the doors to new cryptocurrency ETFs on the market, including Dogecoin, which would benefit investors interested in this memecoin.
Several analysts believe that recent regulatory changes could make it easier for less conventional cryptocurrency ETFs, such as Dogecoin, to be approved. However, fund managers are likely to initially focus on more established cryptocurrency ETFs, such as Solana and XRP. These cryptocurrencies have already seen multiple spot ETF applications, indicating that issuers prefer to bet on assets with a solid track record and a more active developer community.
The future of the Dogecoin ETF
The launch of a Dogecoin ETF remains a tantalizing possibility, but it also presents significant challenges. The main barrier is the perception of Dogecoin as a more speculative and less stable cryptocurrency than other options on the market. However, Dogecoin’s popularity and loyal fan base cannot be ignored. If an issuer decides to take the risk and file an ETF application for this memecoin, it could capitalize on the media attention and public interest.
Analysts believe that the possibility of a Dogecoin-based ETF would not only expand options for investors but could also attract a new group of investors to the crypto ecosystem.
In short, while the initial focus may be on more established cryptocurrencies, the future of the market looks promising for assets like Dogecoin. The evolution of the regulatory environment and the growing curiosity of investors could be the catalyst needed to open new doors in the world of cryptocurrencies.
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