- Analysts say Dogecoin, the meme cryptocurrency created as a joke in 2013, has a serious chance of getting its own spot ETF (exchange-traded fund) on Wall Street.
- While the SEC has historically scrutinized crypto ETF applications heavily, a change in leadership could lead to more lax approval standards, potentially paving the way for a Dogecoin ETF.
- Dogecoin has seen real use as a peer-to-peer currency despite its playful nature, and asset managers like Grayscale are considering including it in future crypto investment products.
Dogecoin, the meme coin created as a joke in 2013, has a serious chance at making a Wall Street debut according to analysts.
Dogecoin’s Wall Street Potential
Following the approval of spot Bitcoin and Ethereum ETFs this year, asset managers have already filed applications for other crypto ETF products. Bloomberg ETF analyst Eric Balchunas believes that even Dogecoin could get its own spot ETF.
Balchunas told Decrypt, “The ETF industry is famous for throwing spaghetti at the wall. I imagine we’ll see all kinds of stuff get attempted, including DOGE.” He added, “I’m actually surprised it hasn’t been filed already.”
Regulatory Hurdles
The Securities and Exchange Commission (SEC) has traditionally scrutinized crypto ETF applications. Bitwise Senior Investment Strategist Juan Leon told Decrypt that under the SEC’s current administration, Dogecoin is unlikely to meet the required qualifications.
Leon said that if the SEC chair changes following the election, the regulator could potentially become more lax about approving applications. Even so, he believes tokens like Ripple (XRP), Solana (SOL), and Avalanche (AVAX) would likely come before a Dogecoin ETF.
Retail Investor Interest
Despite the regulatory challenges, Leon said if there is clarity from regulators, “you could ostensibly see issuers pursue a Doge ETF and I could see it getting approved at some point.” He noted that Dogecoin has demand from retail investors, so an issuer could be interested in launching a Dogecoin ETF.
Unique Attributes
According to Grayscale, Dogecoin has seen real-world use as a peer-to-peer currency despite its playful origins. While not currently included in any Grayscale products, the firm said Dogecoin is under consideration for future offerings.
Conclusion
While Dogecoin faces hurdles as an ETF candidate, its retail investor interest and real-world use cases give it a chance of making it onto Wall Street. The regulatory environment will play a key role in determining if and when a Dogecoin ETF could become a reality.
