Could a Dogecoin ETF Be Approved? Here are the dynamics and prospects

Bittime - Dogecoin has now carved itself out as one of the largest cryptocurrencies with a market capitalization of around $60 billion (around IDR 966 trillion). Currently, the cryptocurrency world is discussing the possibility that Dogecoin ETF can get approval. 

This phenomenon became a hot topic of conversation after success Bitcoin ETF And Ethereum ETF which opens up new opportunities for altcoins, including Dogecoin. So, what actually makes Dogecoin ETF so interesting? Is there a real opportunity for Dogecoin to break into traditional markets in the form of an ETF? 

This article will review the steps towards approval Dogecoin ETF, existing obstacles, and the influence of well-known figures such as Elon Musk on its prospects.

Steps to Dogecoin ETF

The success of the Bitcoin and Ethereum ETF in 2024 is an achievement that adds optimism to the possibilities Dogecoin ETF. However, even though Dogecoin has become a big player in the crypto world, the process towards ETF approval was not easy. 

One of the first steps that must be taken is creation regular futures market and has high liquidity in the spot market, which currently does not exist for Dogecoin. 

Bitcoin and Ethereum have more mature futures markets and more transactions, while Dogecoin still has to face major obstacles in this area.

In addition, acceptance of regulations from competent authorities, such as Securities and Exchange Commission (SEC) United States, is a big challenge for Dogecoin. 

The SEC already has strict requirements for cryptocurrencies that want to become ETFs, and Dogecoin still has to show that it meets those criteria. 

However, with the development of friendlier crypto regulations in various countries, there is hope that Dogecoin ETF approval could become a reality in the next few years.

Read also: Getting to know MyDoge Wallet: Understanding and Functions

Dogecoin ETF Regulatory Obstacles

One of the main obstacles in getting approval Dogecoin ETF is the lack of clear regulations regarding futures market Dogecoin. Bitcoin and Ethereum have well-established futures markets. 

However, Dogecoin still does not have sufficient structure to qualify as the basis of an ETF. The SEC wants it to be high liquidity and orderly markets to avoid excessively high volatility, which could be detrimental to investors.

Besides that, strict SEC policy, led by Gary Gensler, is also a challenge in itself. Gensler is known for his conservative stance on digital assets, and this adds complexity to efforts to get a Dogecoin ETF approved. 

However, as political changes occur, such as a change in leadership at the SEC following the US election, more altcoin-friendly policies may become possible. This would open up the opportunity for a Dogecoin ETF to get the green light.

Famous Figure Support

One of the factors that continues to strengthen Dogecoin's popularity is support from famous figures, especially from Elon Musk. Every time Musk makes a statement or mentions Dogecoin, the market seems to immediately respond with a price spike. 

On one occasion, a Elon Musk reference against Dogecoin causing the price to spike up to 15% in 24 hours. Musk's continued support further strengthens Dogecoin's position in the crypto market.

Nonetheless, reliance on the influence of individuals like Musk adds volatility and uncertainty for long-term investors. On the one hand, Musk helped lift Dogecoin to a higher position in the market. 

However, on the other hand, this gives the impression that Dogecoin is still heavily influenced by celebrity endorsement and not just by fundamental factors like Bitcoin.

Read also: How to Mining $DOGE? Follow the Tutorial!

Effect of Dogecoin ETF News on Dogecoin Price

News about possibilities Dogecoin ETF in recent months has had a significant impact on the price of Dogecoin. At the time the rumors hit Dogecoin ETF filing circulated, the price of Dogecoin immediately soared 9% from $0.3986 (around Rp. 6,410) to $0.43 (around Rp. 6,930) in a short time. 

Even in November, the price of Dogecoin rose more than 150%. Some analysts even predict that the price of Dogecoin could break out $1 (around IDR 16,100) in December 2024 if it successfully breaks through an important resistance level.

Although there are bullish predictions regarding Dogecoin, Dogecoin price is still facing some resistance levels in the range $0,45 (Rp7.245) And $0.50 (Rp8.050). If it succeeds in breaking through this level, Dogecoin has the potential to continue its upward trend $0.60 (Rp9.660) or more. 

However, if it fails to maintain the support level at $0,40 (Rp6.440), there is a possibility that the price will experience a correction back to $0,35 (Rp5.635).

Read also: History of the Dogecoin Foundation

Conclusion

Potential Dogecoin ETF indeed brings great hope, both for crypto investors and Dogecoin fans themselves. While these opportunities appear promising, regulatory challenges and reliance on outside influences such as Elon Musk remain factors that must be overcome. 

With the growing development of the crypto market and possible changes in regulatory policies, there is hope that Dogecoin can transform from just being memecoin become legitimate financial assets. 

Even so, over time, decisions about Dogecoin ETF will still be greatly influenced by market dynamics, regulatory changes, and of course, support from big figures which can speed up the process.

FAQs About Dogecoin

What is Dogecoin?

Dogecoin (DOGE) is a cryptocurrency that was originally created as a joke or same corner in 2013. 

How did Dogecoin start?

Dogecoin was created by Billy Markus And Jackson Palmer in 2013 as a parody of Bitcoin. They use pictures anjing Shiba Inu from internet memes as the Dogecoin logo.

Can Dogecoin be mined?

Yes, Dogecoin can be mined using an algorithm proof-of-work (PoW), just like Bitcoin. 

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Reference 

CoinGape, Will Dogecoin Price Hit $20 If DOGE ETF Gets Approved In 2025?, accessed December 31, 2024.

Onesafe, Dogecoin ETF: The Road Ahead, accessed December 3, 2024.

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