The US Securities and Exchange Commission (SEC) is in the process of reviewing several proposals for exchange-traded funds (ETFs) that are based on Dogecoin. One notable application submitted is from NYSE Arca, which seeks approval for a Dogecoin ETF from Bitwise. The ETF, managed with the help of Coinbase Custody for Dogecoin assets and Bank of New York Mellon for cash holdings, aims to reflect the market value of Dogecoin using the CF Dogecoin-Dollar Settlement Price.
Bitwise’s recent filing follows a previously submitted S-1 form to the SEC. In addition to Bitwise, other companies like Grayscale and Rex Shares are also in the race for approval of their respective Dogecoin ETF applications, with Grayscale’s request reportedly further advanced in the SEC’s review process.
Recent market speculation suggests that the chances of receiving ETF approval have shifted to around 67%, according to Polymarket, while Bloomberg analysts are more optimistic, predicting a 75% probability of approval by 2025.
Despite this growing optimism, the market for Dogecoin has faced significant challenges, with a recent decline resulting in a nearly 16% drop in price and a 17% fall in trading volume. This volatility exemplifies the unpredictable nature of meme coins like Dogecoin, which can experience rapid and substantial price fluctuations.
On a technical analysis front, the Dogecoin to US Dollar (DOGEUSD) chart indicates a notable bearish trend following a previous upward movement. After encountering resistance around 0.24000, the market has shifted downward, finding support around 0.18500. Currently, trading is occurring near this support level, which could present a potential opportunity for buyers seeking a bounce-back if a bullish reversal pattern manifests. Meanwhile, sellers may be looking for a break below this level to initiate further downward movements.
Despite the current market turbulence, there remains a positive outlook regarding Dogecoin’s future, particularly with the possibility of a regulated ETF. Such developments could suggest a broader acceptance of cryptocurrencies in traditional financial markets, according to analysts.
Overall, while individual market performance may fluctuate significantly, the establishment of Dogecoin ETFs could signal a new chapter in the integration of cryptocurrencies into mainstream investment options. As the SEC continues to review these filings, the crypto community is keenly observing the outcomes, which may ultimately shape the future of digital asset regulations and participation.