A leading ETF analyst claimed that a Dogecoin ETF will go live on US markets this Thursday. A meme coin ETF would open the floodgates for more altcoin approvals, as DOGE has no utility or value beyond its community.
His assessment prompted a massive rally for DOGE, but this dissipated. The SEC has gotten cold feet on several altcoin ETF approvals, and traders may be waiting for more explicit confirmation.
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A Dogecoin ETF This Week?
Dogecoin has enjoyed a minor bull run this week, as increasing confidence in ETF approval is encouraging a flurry of trading activity. Eric Balchunas, a prominent ETF analyst, just claimed that the product will hit the markets in two days.
If Dogecoin does get an ETF in the US, that would be a major milestone for crypto history. The Commission has been loath to approve any of the new wave of altcoin ETF applications, but it might greenlight a meme coin?
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If this happens, it’d make meme coin history, and presumably signal a string of new SEC approvals.
DOGE was the first-ever meme coin, so it seems fitting that it’s leading the whole sector here. A Dogecoin ETF would be the first US-listed ETP of any sort where the underlying asset has zero utility whatsoever.
Sure, Balchunas noted that Rex Osprey is using a model with different approval requirements than most proposals, but it’s still an ETF.
Market Hesitancy Explained
However, DOGE’s subsequent price moves seem a little confusing. Although Dogecoin spiked after the initial ETF post, those gains have completely vanished:
Dogecoin Price Performance. Source: CoinGeckoSponsored
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So, why is this? ETF hype has spurred Dogecoin bullishness for several days, but this major news only prompted ephemeral gains. There’s one possible explanation, and it’s quite simple: the markets need a little more proof.
Although the Commission has been trying to loosen approval requirements, no new products have actually materialized yet. In July, it explicitly approved an altcoin basket ETF, and indefinitely delayed it soon after.
Simply put, the SEC has not firmly and unequivocally stated that a Dogecoin ETF will go live in two days.
Until the product is actually available for sale, we’re in an ambiguous situation. If this approval really does go through, it would be highly likely to provide huge benefits for DOGE.
However, the SEC could get cold feet again, as it has on several recent occasions. Time will tell, but there’s a huge potential investment here.
Source: https://beincrypto.com/dogecoin-etf-approval-likely-markets-hestitate/
