Much of the crypto momentum comes from the support of crypto-friendly leaders in the United States. This change of policy has led to more talks surrounding the approval of spot ETFs for some of the major altcoins, like Dogecoin XRP and Solana, over the past few weeks.
Although several applications for such ETFs are submitted to the U.S. Securities and Exchange Commission (SEC), Dogecoin is absent from the list. Yet, there are concerns that under President-elect Donald Trump, a Dogecoin spot ETF could be a long way off.
The Dogecoin Spot ETF
Currently, Dogecoin is a top meme coin, aided and abetted by the vocal support of Elon Musk. Secured via proof-of-work consensus, the network has more than 5.9 million on-chain holders, indicating extensive usage.
However, no investment fund managers have filed for a Dogecoin spot ETF with the SEC so far. Donald Trump’s inauguration may serve as a catalyst, said Eric Balchunas, a senior exchange-funded funds analyst at Bloomberg.
“The new administration could provide an easier environment for crypto ETFs. If that occurs, we could see a Dogecoin ETF filing earlier than expected,” he added.
Balchunas noted that the future SEC chair Paul Atkins could help speed up the process of approving crypto ETFs. If I’m Vegas, by my favourite in reserve of $DOGE, tick Venuto. That said, for the ETF, Tuttle is my favourite to file.”
A Brave Move by the Whales
Recent on-chain data shows that Dogecoin whales have been aggressively buying during the recent dip in the market. According to blockchain analytics company Santiment, large-scale DOGE investors accumulated around 250 million meme coins for an amount of over $77 million.
Wallets that hold between 1 million and 10 million DOGE now own more than 10.7 billion coins combined, almost 1% of the total circulating supply, the data revealed. This buildup by whales indicates a rising confidence in Dogecoin’s long-term value.
Will Dogecoin Break Out Of Its Midterm Correction?
Dogecoin’s price has been hovering after much price appreciation over the last two months. The asset is now testing crucial levels of support with a fully diluted market valuation near $47 billion and an average daily trading volume of around $5 billion.
If you haven’t opened chats again, make sure to do so as the power of the 0.5 Fibonacci starts to be restored. It has been the last major benchmark that we held and had a significant rebound.
On a larger scale, Dogecoin’s weekly charts are presenting bullish signs. The Relative Strength Index (RSI) has crossed the 85% threshold, a level not reached since the middle of 2021. The evolution has ignited optimism among trades, with some suggesting a run towards all-time highs as long as market conditions remain favourable.
Where does Dogecoin go from here?
A Dogecoin spot ETF asset could see dramatic changes to the market under Trump administration approval. Such a move could attract institutional investors and solidify Dogecoin as a legitimate investment vehicle.
Apart from regulatory aspects, crypto whales’ movements may play a crucial role in determining Dogecoin’s price action. Their stack is still piling, delivering confidence that, in the long run, Dogecoin will realize its full potential.
For now, investors and analysts alike have their eyes glued to developments in Washington and within the broader crypto market. Regardless of whether a Doge ETF ever finds its way to the market or not, the continued interest demonstrates the overall viability of Doge as an asset.
Cryptocurrency investment is subject to market risk. There is alternative news available, but readers should be wary and just make decisions after detailed research and expert advice.
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FAQs
Dogecoin Spot ETF: What does it mean?
Such a product could attract institutional flows and contribute to the asset class’s standing as an investment vehicle.
Why are crypto whales investing in Dogecoin now?
Crypto market speculation is rife as regarding the announcement of a spot ETF that has surged whale interest with 77 million dollars worth of Dogecoin being bought up.
What would Trump’s presidency mean for Dogecoin ETF applications?
With Paul Atkins in charge, Trump is bound to make the most liberal of rulings: investment fund managers will be betting on a dogecoin ETF.
And what is the technical analysis like for Dogecoin now?
Positive RSI indicators could lead to a Dogecoin comeback as the token retests several critical Fibonacci retracement levels while denying a possible return to price highs.
