ETF Dogecoin Will Exist? Here's The Opinion Of Analysts!

The Dogecoin ETF is rumored to be launching soon. (Photo; Doc. TronWeekly)

JAKARTA - Competition for a place in the Exchange Trade Funds (ETF) spot market is getting fiercer after Bitcoin and Ethereum get spot ETF approval from the US Securities and Exchange Commission (SEC) in the first quarter of 2024. Now, there is speculation that Dogecoin, the largest meme-based crypto asset by market capitalization, is potentially available in ETF products on Wall Street.

A number of industry experts consider that Dogecoin ($DOGE) is likely to be present in spot ETF products. However, unlike Bitcoin and Ethereum, Dogecoin will not be available in the regularized futures market (futures market). Where this is often the main prerequisite that the SEC often pays attention to before approving the ETF.

The absence of this future market makes Dogecoin not meet all SEC requirements to become a spot ETF. Even so, some analysts stated that there is a possibility that regulations could change so as to smooth the way for Dogecoin to enter the spot ETF market.

Bitwise analyst Juan Leon revealed that the approval of the ETF for Dogecoin under current regulations is still not possible. The SEC usually requires that every digital asset, be it Bitcoin, Ethereum, or Dogecoin, must have a regularized futures market and high liquidity in the spot market in order to qualify as an ETF spot product.

However, there are possible changes within the SEC that could loosen these requirements, especially if the SEC is not led by Gary Gensler anymore. speculation says that if the current SEC chairman, Gary Gensler, is replaced, for example, due to political changes after the US election, then the way for Dogecoin as an ETF spot could be more open.

Eric Balchunas, a senior ETF analyst from Bloomberg, also highlighted that the ETF industry is known for its experimental properties that allow assets like Dogecoin to enter into ETF offerings despite having to face a number of challenges at the start. The previous SEC's approval process for Bitcoin and Ethereum ETFs shows an increased acceptance of digital assets in traditional financial markets.

In addition, Dogecoin's widespread popularity and strong community support can provide additional impetus, especially as the SEC responds to growing interest in digital assets, both from retail and institutional investors. If Dogecoin succeeds in the spot's ETF, this would be a big step towards bridging crypto assets with conventional financial markets, where investors around the world can invest in big-scale Dogecoin crypto assets.