Dogecoin (DOGE) Price Could Soar to New Highs if a Dogecoin ETF Market Secures Approval

The Dogecoin price could soar to new highs if a Dogecoin ETF market secures approval and attracts just 30% of the inflows from Bitcoin ETF products.

Dogecoin (CRYPTO: DOGE) has had a stellar 2023, largely driven by retail enthusiasm and a few key fundamental developments.

One factor that could have a significant impact on Dogecoin's price in 2024 is the potential approval of a Dogecoin ETF. Several asset managers are reportedly considering filing for a DOGE ETF, and if approved, it could open up the meme coin to a broader range of investors.

Bloomberg ETF expert Eric Balchunas has previously stated that Dec. 31 could be the optimal time for an asset manager to file for a Dogecoin ETF.

Should asset managers decide to launch a DOGE ETF, it has the potential to attract a substantial amount of capital, which could lead to a strong increase in Dogecoin's market price.

For instance, Bitcoin ETF products have seen $30.8 billion in total cumulative net inflows. If a Dogecoin ETF were to capture even 30% of this figure, it would equate to an injection of $9.24 billion into the DOGE market.

Applying a quarter of the Bank of America multiplier of 118x would result in a market cap multiplier of 29.5x for every dollar that flows into the Dogecoin ETF.

At this 29.5x rate, the $9.24 billion would translate to an additional $272.58 billion in market cap for Dogecoin, bringing its total market valuation to $334.68 billion, just shy of Ethereum's current market cap of $406.58 billion.

With a market cap of $334.68 billion, Dogecoin's price could cross the $1 mark, potentially skyrocketing to $2.2 per token. Several analysts, including Ali Martinez, have expressed optimism about this target, with Martinez recently predicting a possible rally to $2.4.

However, it's crucial to note that this analysis is based on several assumptions and projections, and the actual market dynamics and regulatory decisions may vary.