The cryptocurrency market is once again abuzz, as Dogecoin (DOGE) experiences a surge in its price despite the latest delay in the launch of the US Dogecoin ETF. The memecoin saw a 4% increase, reaching $0.26, even as regulatory hurdles for the ETF persist.
Dogecoin Price Rises Amid ETF Uncertainty
According to CoinMarketCap data, Dogecoin rose by nearly 4% in the last 24 hours, climbing to $0.2603. The increase came shortly after Bloomberg’s senior ETF analyst Eric Balchunas reported another delay in the approval process for the first-ever US Dogecoin ETF. Initially expected to launch on September 12, the Rex-Osprey DOGE ETF (DOJE) is now anticipated to list by the middle of next week, likely on Thursday.
The DOJE ETF, which received approval under the Investment Company Act of 1940, holds a unique position compared to other cryptocurrency ETFs. Unlike Bitcoin ETFs approved under the Securities Act of 1933, which focus on commodity-backed products, the DOJE ETF uses derivatives and a Cayman Islands-based subsidiary for diversified management, adhering to 1940 Act guidelines.
Analysts Predict Minimal Immediate Impact
Eric Balchunas speculated that the ETF’s absence would minimally affect Dogecoin’s price in the short term. He explained that while Bitcoin ETFs opened doors for investors without direct crypto access, most DOGE enthusiasts likely already use crypto platforms. Nonetheless, Balchunas predicts an influx of Dogecoin ETFs towards the end of the year, with an estimate of four to five funds launching by October or November.
Despite these intricacies, Dogecoin’s growing institutional attention is undeniable. For example, CleanCore Solutions, a company specializing in aqueous ozone cleaning systems, recently acquired $130 million worth of DOGE, advancing toward its 1 billion Dogecoin treasury target. Meanwhile, Trump-linked media company Thumzup announced its intention to purchase 3,500 Dogecoin mining rigs, reinforcing the cryptocurrency’s expanding presence in various industries.
Should You Invest in Dogecoin?
While Dogecoin remains a highly speculative asset, the increasing attention from institutional investors could drive its long-term value. For those interested in investing, tools like the Robinhood app make it easy to trade cryptocurrencies, including Dogecoin, alongside traditional stocks. It’s always wise to consider expert financial advice before diving into crypto investments.
The landscape of memecoins like Dogecoin continues to evolve, with ETF developments playing a significant role. As more institutional players enter the market, the future of Dogecoin could extend beyond its meme origins to become a more widely adopted digital asset.
