The US Securities and Exchange Commission (SEC) is examining several applications for potential exchange-traded funds (ETFs) based on Dogecoin. Among these, NYSE Arca has submitted a 19b-4 filing requesting approval to include Bitwise’s Dogecoin ETF, which will be managed by Coinbase Custody for the Dogecoin assets and Bank of New York Mellon for cash holdings. This ETF is designed to track the market value of Dogecoin referencing the CF Dogecoin-Dollar Settlement Price.
Additionally, Bitwise’s new application follows an earlier S-1 submission to the SEC. Other companies, including Grayscale and Rex Shares, are also in the process of obtaining approval for their own Dogecoin ETFs. Notably, Grayscale’s application is reportedly further along in the SEC’s review process.
Recent analyses by Polymarket suggest an increasing likelihood of a Dogecoin ETF receiving approval, with chances currently estimated at 67%. Bloomberg analysts have an even more optimistic projection, giving a 75% probability of approval by 2025.
In the face of this positivity surrounding potential ETF approval, Dogecoin’s market performance has seen significant fluctuations. Recently, there was a notable price decrease of around 16%, alongside a decline of 17% in trading volume. This scenario exemplifies the typical volatility associated with meme-based cryptocurrencies.
Despite this downturn, market sentiment remains optimistic. Analysts believe that the establishment of a regulated Dogecoin ETF could indicate a broader acceptance of cryptocurrencies within traditional financial markets. This shift may foster increased mainstream interest and investment in digital assets.
The price movements in the Dogecoin market have been telling. A recent analysis of the DOGEUSD hourly chart shows a substantial bearish trend following a period of upward momentum. The price met resistance at 0.24000, prompting a bearish engulfing candle. Since encountering this resistance, Dogecoin has been on a downward trend but has found a support level at around 0.18500.
In light of the current market conditions, buyers may be on the lookout for a potential bounce at this support level, aiming to identify a bullish reversal pattern to initiate long positions. Conversely, sellers could be looking for a break below this level, which would be an indication to enter short positions in anticipation of further declines in price.
Overall, while there is enthusiasm regarding ETF approvals, market volatility and price corrections are intrinsic to Dogecoin and similar cryptocurrencies, making investment strategies crucial for participants in this space.