REX Shares, known for its pioneering spirit in the realm of Exchange-Traded Funds (ETFs), has taken a bold step forward by filing proposals for ETFs linked to various cryptocurrencies, with Dogecoin making the list. This development comes as a significant juncture for Dogecoin, aligning with the heightened buzz in the crypto market, which is currently experiencing some of the most optimistic sentiments seen in years.
A Wave of New ETF Filings
The cryptocurrency sphere has been buzzing, especially following the inauguration of Donald Trump as the new U.S. president, a period marked by dramatic fluctuations in the prices of many digital currencies. In the midst of this volatility, REX Advisers and Osprey Funds have joined forces to submit filings to the U.S. Securities and Exchange Commission (SEC). They aim to secure approval for seven new cryptocurrency ETFs that would offer exposure to a variety of digital assets. These assets range from stalwarts like Solana and Ripple’s XRP to meme coins like Dogecoin, and even the newly introduced TRUMP coin.
ETFs have become the focal point in the crypto community, largely due to the success of Spot Bitcoin ETFs that launched in the U.S. early last year. Their success marked a watershed moment for institutional crypto investments. Following this trend, Spot Ethereum ETFs have also debuted, igniting discussions about introducing spot ETFs for other digital assets, particularly XRP and Solana.
The new ETF filings by REX, however, are not just about capturing rising interest in diverse crypto assets. They also serve as a measuring stick for the SEC’s progress under its newly relaxed, crypto-friendly leadership. Bloomberg’s senior ETF analyst, Eric Balchunas, emphasized the burgeoning interest in these areas, pointing out that the number of crypto ETF filings with the SEC has soared to 33. This figure has essentially doubled since Gary Gensler stepped down as the chairman of the regulatory body just last Friday.
The Impact of a Dogecoin ETF
So, what does this mean for Dogecoin? The nature of these filings suggests that the proposed ETFs could be rolled out to the market swiftly, potentially within the next 75 days. Dogecoin, in particular, stands to gain significantly if an ETF is introduced. Recent market dynamics have positioned Dogecoin as the preferred choice for retail investors, while Bitcoin increasingly attracts institutional investors.
Historically, Dogecoin has demonstrated a capacity to surge in value following favorable developments, such as tweets from Elon Musk or its listing on major exchanges. If a Dogecoin ETF gets the green light, it could lead to a substantial influx of investment from new market participants. This, alongside robust community backing, might drive its price beyond the $1 threshold. Crypto analysts are optimistic about Dogecoin surpassing this milestone in the current cycle, with various technical indicators and patterns supporting such forecasts.
As of now, Dogecoin is trading at $0.364, reflecting a 5.1% rise in the last 24 hours. Should it reach $1, this would represent a 175% increase from its current level.
Dogecoin trading at $0.36 on the daily chart | Source: DOGEUSDT on Tradingview.com
Featured image sourced from Unsplash, and chart provided by Tradingview.com.
