Bitwise Files for Dogecoin ETF as Analyst Predicts 900% Surge

• Bitwise officially files with the SEC for a spot Dogecoin ETF.
• DOGE’s market cap reaches $47 billion, securing its place as the 8th-largest cryptocurrency.
• Analyst Ali Martinez suggests DOGE could surge 900% in 48 hours, citing historical patterns.

Bitwise has submitted an S-1 filing with the SEC to list a spot Dogecoin ETF. This marked an official step toward institutional adoption of the memecoin.

Meanwhile, analysts remained bullish on DOGE. They referenced its 900% price rally in 2021 as a precedent for future gains.

Bitwise Seeks SEC Approval for Spot Dogecoin ETF

Bitwise officially filed with the SEC on January 28 to launch a spot Dogecoin ETF. It aims to track the memecoin’s price movements. This follows the firm’s January 22 Dogecoin Trust registration in Delaware, making its ETF bid official.

Per the January 28 S-1 filing, the ETF would track the DOGE price movements and provide institutional exposure to the memecoin. Coinbase Custody is listed as the fund’s custodian, though Bitwise has yet to disclose the ETF’s ticker symbol or management fees.

Bloomberg ETF analyst James Seyffart noted that Bitwise’s filing marks the latest in a wave of memecoin ETF applications.

Several issuers have filed for products tracking DOGE and speculative tokens like Official Trump (TRUMP). The issuers include Osprey Funds, REX Shares, and Tuttle Capital,

Seyffart stated that fund issuers are “testing the limits of what this SEC is going to allow.” However, for spot Dogecoin ETF to proceed, the SEC must also approve a 19b-4 filing, which starts the review process.

DOGE’s Market Cap and Historical Surge Potential

At press time, Dogecoin boasted a $47 Billion market cap, making it the eighth-largest cryptocurrency. Despite its 25% decline since its Jan. 18 peak of $0.4341, some analysts remain bullish.

Market analyst Ali Martinez believes betting against DOGE is unwise, citing its history of explosive price surges. He referenced Dogecoin’s 2021 rally, where the token spiked 900% within 48 hours. The DOGE price surged from $0.0075 to $0.0736 on Jan. 28, 2021.

Martinez argues that DOGE’s ability to defy bearish trends remains intact, especially given its 159% rally to $0.4389 after Donald Trump’s election win. He suggests that while a 900% spike to $3.20 might require more capital influx, it remains a possibility.

Unlike in 2021, when Dogecoin had a $935 Million valuation, today’s $47 Billion cap made rapid moves harder. However, Martinez disputed this.

He compared DOGE’s market cap to XRP and BlackRock’s asset holdings. He further stated that market cap alone does not dictate price potential.

Will the SEC Approve a Dogecoin ETF?

Bitwise’s Dogecoin ETF proposal could signal growing institutional adoption of memecoins. However, the SEC’s approval remains uncertain.

The agency approved spot Bitcoin ETFs in January 2024. Moreover, it later allowed the first spot, Ethereum ETFs, to start trading on July 23, 2024.

These approvals set a precedent.DOGE, on the other hand, may undergo a more rigorous vetting procedure. This is because it is a memecoin with no underlying utility or smart contract capability.

If approved, Bitwise’s Dogecoin ETF could drive institutional investment, similar to how Bitcoin and Ethereum ETFs fueled market rallies. However, an SEC rejection could increase volatility, especially with speculation over the potential 900% surge of DOGE.

The DOGE price traded at $0.331 at press time, reflecting a 1.02% daily decline. Whether Bitwise’s ETF approval or another price rally will materialize remains to be seen.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.