- Grayscale’s spot Dogecoin ETF filing could open new liquidity for $DOGE.
- Dogecoin’s regulatory advantage over other altcoins may accelerate ETF approval.
- Growing competition in the Dogecoin ETF race adds pressure for faster approval.
Grayscale has made a bold move by filing with the SEC for approval of a spot Dogecoin ETF. This follows the company’s launch of its Dogecoin Trust, marking a significant step toward expanding its ETF portfolio.
As the race to launch a Dogecoin ETF heats up, industry observers are paying close attention to how this filing could affect Dogecoin’s price. The ETF would provide investors exposure to $DOGE without needing to hold the digital asset directly. While this could bring new liquidity into the market, several factors will determine whether Dogecoin’s price sees an immediate surge.
Grayscale’s ETF Proposal and the Regulatory Landscape
Grayscale has filed a 19b-4 form with NYSE Arca, seeking to list and trade shares of its proposed spot Dogecoin ETF. This filing is a regulatory requirement for any new ETF listings.
The SEC has 45 days to review the proposal and can approve, disapprove, or extend the review period. Grayscale has been active in the ETF space, securing approvals for Bitcoin and Ethereum ETFs last year. The company’s legal victory in August 2023, when the court ruled the SEC’s rejection of its Bitcoin ETF as “arbitrary and capricious,” has paved the way for this new move.
Unlike Bitcoin, Dogecoin is not facing legal challenges with the SEC, which could expedite the approval process. Additionally, Dogecoin’s use case is broader than just a store of value. The digital currency can be used for payments, both on digital platforms and as transaction fees on the Dogecoin network. These factors could give Dogecoin a regulatory advantage over other cryptocurrencies, like Solana and XRP, which have faced SEC disputes.
Dogecoin ETF Competition
As Grayscale pushes forward with its Dogecoin ETF proposal, it faces growing competition. Bitwise has also filed its own application to track the spot price of Dogecoin, adding further pressure to the market.
With multiple firms now targeting a Dogecoin ETF, the landscape is becoming crowded. Eric Balchunas, an ETF analyst, noted that Grayscale’s move to convert its Dogecoin Trust into an ETF on the same day of launch is unprecedented. This strategic move might draw more attention to Dogecoin, especially if it leads to faster regulatory approval.
Current Market Conditions
DOGE/USD daily price chart, Source: Trading view
At the time of writing, Dogecoin is trading at $0.324077, with a trading volume of approximately $1.76 billion in the last 24 hours. Despite a slight drop of 0.90% in the past day, the market remains relatively neutral, as indicated by the RSI of 46.14. This suggests that Dogecoin is not yet in an oversold or overbought territory, which means the market could experience a shift soon.
The MACD, which is below the signal line and showing negative histogram bars, points to bearish short-term momentum. However, this could reverse if buying pressure increases.
