- The prospect of a Dogecoin ETF emerging in 2025 has gained attention, particularly after the successful launches of Bitcoin and Ethereum ETFs in 2024.
- DOGE’s market value could increase significantly if a Dogecoin ETF captures 30% of the $30.8 billion in cumulative net inflows that Bitcoin ETFs are currently experiencing.
Exchange-traded funds (ETFs) have become increasingly popular investment vehicles, allowing institutional investors easier access to cryptocurrencies. The approval of Bitcoin ETFs in January has already generated excitement and an influx of investment in Bitcoin, which has historically influenced the broader market.
However, a sobering scenario is emerging: what if Dogecoin, often seen as a fun alternative, a joke, often fueled by internet meme culture, was suddenly aiming for a more prestigious role? Speculation is increasing around the possibility of a Dogecoin ETF filing in 2025, arousing the curiosity of investors.
Calculation of potential price after ETF approval
The continued rise in the price of Bitcoin, which recently surpassed $99,000, has been supported by large inflows to Bitcoin ETF, which have attracted more than $30.8 billion since their SEC approval. This influx has led to considerable interest in the launch of ETFs for other cryptocurrencies, including Ethereum (ETH), which launched its own ETF products in July, and for the XRP and Solana ETFs which are awaiting launch. approval.
Financial experts, including Nate Geraci, CEO of ETF Store, suggests that asset managers could file for a Dogecoin ETF as a strategic marketing tool to capture investor interest. If a Dogecoin ETF were to secure just 30% of the anticipated Bitcoin ETF inflows, estimated at $9.24 billion, the implications for Dogecoin’s market cap would be substantial. By applying a multiplier based on historical data from Bank of America, which uses a multiplier of 29.5xthis influx could potentially significantly increase Dogecoin’s market capitalization.
This multiplier effect suggests that an inflow of $9.24 billion could result in an additional market capitalization of approximately $272.58 billion for Dogecoin, bringing its total estimated market valuation to approximately $334.68 billion. This influx could cause Dogecoin to break the crucial $1 barrier, which could potentially reach prices around $2.20 or even higher.
As a reminder, Dogecoin has a unique asset: a fervent and loyal community, ready to support an ETF product with enthusiasm. As regulators view cryptocurrency as a legitimate asset class, Dogecoin could capitalize on this changing landscape. This perspective is indeed valid, as regulatory attitudes have shifted from outright skepticism to cautious acceptance.
Take, for example, President Donald Trump, who once declared that Bitcoin “is not money”, claiming that it is very volatile, and has made pro-cryptocurrency policy commitments over the course of his campaigns. As we reported Last month, analysts believe that the impending departure of SEC Chairman Gary Gensler in January could create opportunities for more crypto ETF approvals, further improving Dogecoin’s prospects.
Dogecoin price rose from $0.3986 to $0.43 in 24 hours, representing a 9% increase. Additionally, Dogecoin has shown significant growth in recent weeks, with a remarkable gain of over 150% in November alone. Analysts predict that DOGE price could reach $1 by January 2024 if it maintains its upward trend, surpassing $0.50.