Bitwise files for spot Dogecoin ETF, DOGE risks over 30% decline
- Bitwise joins the meme coin ETF list after filing a Dogecoin ETF.
- The firm had previously filed for a Dogecoin Trust with Delaware last week, which hinted at a close-by ETF submission.
- DOGE could decline by 37% if it breaches a lower descending triangle boundary.
Dogecoin (DOGE) is down 4% following Bitwise's Dogecoin exchange-traded fund (ETF) filing with the Securities & Exchange Commission (SEC) on Tuesday. The top meme coin risks a 37% decline if it breaks a triangular channel's support level.
Dogecoin ETF gains momentum with Bitwise filings
Bitwise submitted an S-1 registration statement to the SEC on Tuesday for a Dogecoin spot ETF. This marks the second DOGE ETF filing with the regulator.
Bitwise's S-1 filing didn't come as a surprise, considering its Dogecoin Trust filing in Delaware last week. The new filing adds to the growing demand for meme coin ETFs following Donald Trump's inauguration as president of the US.
Prior to Bitwise's filing, REX Shares and Osprey filed a suite of ETF applications for meme coins like DOGE, BONK and Donald Trump's TRUMP last week.
"The reality is that there are a lot of people that want to invest in Dogecoin. It's the sixth-largest crypto asset in the world by market cap and it trades over $1bn a day," Bitwise CIO Matt Hougan told the Financial Times.
This attracted mixed feelings, considering the controversy that often accompanies the meme coin category.
However, due to the new presidential administration, the latest DOGE ETF is expected to pass through fewer hurdles to gain approval.
Moreover, the recent launch of the US Department of Government Efficiency (D.O.G.E.), which features the Dogecoin logo, has also boosted investors' confidence in the potential approval of DOGE ETFs.
"There are plenty of questionable investments packaged into ETFs, but meme coins would take this to an entirely new level," said Nate Geraci, president of financial adviser The ETF Store.
In other news, Cboe BZX issued a new set of filings for Solana ETFs from firms including Bitwise, VanEck, 21Shares and Canary Capital.
The exchange previously submitted the 19b-4 filings back in November but received no response from regulators on its approval.
The refiling suggests that the exchange is optimistic that the new SEC administration will approve the ETFs.
DOGE risks 37% decline if it breaches key support level
DOGE is trading within a descending triangle on the daily chart. The top meme coin is expanding its decline that began on January 22.
DOGE/USDT daily chart
If DOGE sustains a firm close below the triangle's lower boundary support level, it could decline about 37% to reach $0.1905. The level is obtained by measuring the triangle's height and projecting downward from the potential breakout point.
On the way down, DOGE could find support near the $0.2106 level.
The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are below their neutral level, indicating dominant bearish pressure. The Stochastic Oscillator (Stoch) is in the oversold region, indicating DOGE may be due for a comeback.
A daily candlestick close above $0.4523 will invalidate the thesis.
Crypto ETF FAQs
An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.
Yes. The SEC approved in January 2024 the listing and trading of several Bitcoin spot Exchange-Traded Funds, opening the door to institutional capital and mainstream investors to trade the main crypto currency. The decision was hailed by the industry as a game changer.
The main advantage of crypto ETFs is the possibility of gaining exposure to a cryptocurrency without ownership, reducing the risk and cost of holding the asset. Other pros are a lower learning curve and higher security for investors since ETFs take charge of securing the underlying asset holdings. As for the main drawbacks, the main one is that as an investor you can’t have direct ownership of the asset, or, as they say in crypto, “not your keys, not your coins.” Other disadvantages are higher costs associated with holding crypto since ETFs charge fees for active management. Finally, even though investing in ETFs reduces the risk of holding an asset, price swings in the underlying cryptocurrency are likely to be reflected in the investment vehicle too.
บทความแนะนำ
