Dogecoin (DOGE) Now in the Spotlight After Nasdaq Applied to List the 21Shares Dogecoin ETF

Optimism over the potential approval of a Dogecoin (DOGE) exchange-traded fund (ETF) has seen the meme coin rise to new seven-week highs on Monday, outperforming Bitcoin and Ether in the process.

Here's what happened:

Nasdaq Files For 21Shares Dogecoin ETF

Nasdaq on Sunday applied to list a Dogecoin ETF series that would be managed by 21Shares and designed to track the price of meme coin Dogecoin.

The ETF will not use leverage or derivatives and will have Coinbase Custody Trust as the authorized custodian, according to a 19b-4 form filed with the U.S. Securities and Exchange Commission (SEC).

This filing follows an S-1 listing by 21Shares on April 10 in collaboration with the House of Doge, the corporate arm of the Dogecoin Foundation, aiming to bring Dogecoin into the broader realm of institutional investment.

The SEC has set a June 15 deadline for a decision on the Dogecoin ETF filings by Bitwise and Nasdaq.

Although there has been no official approval yet, investor interest in Dogecoin has been evident in the form of a significant increase in price and trading volume since the start of the year.

An approved ETF could open up access for both institutional and retail investors to invest in Dogecoin through regulated channels, further increasing the legitimacy and adoption of this cryptocurrency.

Potential Impact Of ETFs On Dogecoin Price

Since the launch of the Bitcoin ETF in January, the product has managed to attract more than $40 billion in assets under management.

If the Dogecoin ETF manages to attract 30% to 50% of the Bitcoin ETF inflows, then DOGE could receive an additional $12 billion to $20 billion.

Considering that Dogecoin's current market capitalization is around $24 billion, such an injection of funds could double or even triple DOGE's market value.

These estimates suggest that the price of DOGE could increase by up to $0.34 to $0.50 if it receives such inflows, reflecting a potential gain of 95% to 190% from the current price.

However, it is important to emphasize that these projections are speculative and depend on various market factors, including investor demand and macroeconomic conditions.

Market Reaction And Investor Sentiment

Following the ETF filing by Nasdaq, the price of DOGE rose 2.3% in the last 24 hours, breaking through the $0.17 resistance level (approx. IDR 2,784).

In the past week, DOGE recorded a 5% gain, surpassing the performance of Bitcoin and Ether in the same period. The increased trading volume indicates the market's anticipation of the potential ETF approval and its impact on DOGE's price.

Market analysts note that the ETF approval could change the perception of DOGE from a mere “meme coin” to a legitimate investment asset in institutional portfolios. This could increase the adoption of DOGE among investors who have previously been reluctant to invest in cryptocurrencies that lack structured investment products such as ETFs.

Further Implications For The Crypto Market

The approval of the Dogecoin ETF could also pave the way for similar ETFs for other cryptocurrencies, such as Ripple (XRP) and Solana (SOL), which are also in the process of applying for ETFs.

This demonstrates the growing trend of integrating cryptocurrencies into the traditional financial system through regulated investment products.

However, it is crucial to consider that ETF approval does not necessarily guarantee sustained price increases. Factors such as government regulations, global economic conditions, and overall market sentiment still play a significant role in determining the direction of cryptocurrency prices.

This article originally appeared on Pintu News.