The original internet meme-based cryptocurrency, Dogecoin [DOGE], is continuing to attract interest from large holders and institutional investors. This trend has been particularly pronounced amidst growing speculation about the potential launch of a Spot ETF in the United States.
Despite experiencing a 23% decline from its peak in January when it hit $0.43, whale entities have recently acquired 560 million DOGE tokens. This suggests that significant players have seized the opportunity presented by the recent price drop to increase their positions. According to the analysis by Ali Martinez,
“Over the past week, whales have gathered 560 million #Dogecoin $DOGE after a period of intense selling, indicating a resurgence of interest from major holders!”
Grayscale Considers DOGE ETF
In the realm of ETFs, Grayscale has followed Bitwise in considering the conversion of its most recent Dogecoin Trust into an ETF application. Reflecting on this potential move, Grayscale’s Head of Product and Research, Rayhaneh Sharif-Askar, expressed,
“Dogecoin has evolved into a potentially influential tool for advancing financial inclusivity. We view Dogecoin as a quicker, more cost-effective, and highly scalable alternative to Bitcoin, allowing underserved communities in the financial sector to engage with the traditional financial system.”
However, experts in the ETF sector like Nate Geraci and Bloomberg’s James Seyffart have pointed out the possibility of Grayscale transforming the Trust into a spot ETF.
The news mentioned above led to Polymarket’s odds of a U.S DOGE ETF by 2025 surging to an all-time high of 58% before experiencing a slight retreat at the time of writing.
It is worth highlighting that despite this positive development, there has been little impact on DOGE’s price movement. Since December, the meme-based coin has been trading within the range of $0.30 and $0.40.
Considering weak technical indicators and the prevailing market sentiment ahead of the U.S jobs report, a drop below the support level of $0.30 cannot be discounted. Nevertheless, a positive macroeconomic update could propel DOGE to reach $0.40 or even higher.