Mastiff (DOGE -12.28%) Just had exposure to what could become a strong new tailwind. Although it will take at least a few months for it to grow, it could provide the Meme Coin King with additional liquidity, which could send the price higher for a while, under the best conditions.
But does this new possibility make the token worth investing in for those who don’t already hold one? Let’s investigate what’s happening and whether it changes the picture.
This new investment vehicle could allow more money to flow into
Cryptocurrencies tend to flourish when they have a lot of fees capital Flow of new buyers. It is obvious that injecting new money into an asset causes the price to increase.
In this vein, Dogecoin has been around for years now. Investors who wanted to buy and hold it have had plenty of opportunities to do so, both when prices were low, as well as during periods like right now, when prices are high. Still, it’s a bit complicated to invest in the coin compared to something like a stock, which may prevent some investors from purchasing.
Providing these potential investors with a new avenue to invest within the confines of the traditional financial system could be a way for Dogecoin’s price to continue to rise.
And that’s exactly what many asset managers who have Exchange Traded Funds (ETFs) tried to deal with this.
According to a series of regulatory filings in late January, companies such as Osprey Funds and Bit in Bit Asset Management want to create Dogecoin ETFs, making it easy for investors with traditional financial accounts to purchase an asset that matches the price action of the cryptocurrency. Now, a number of technical obstacles make it difficult for these investors to purchase Dogecoin.
This company has also requested permission to offer ETFs for other major meme coins, like Flag And the official Trump meme piece that is currently hosted Solana with the ticker $Trump.
But, assuming the DOGECOIN ETF is approved by regulators Securities and Exchange Commission (SEC)will this be important to investors?
The “fundamentals” will remain the same here
There’s no avoiding the fact that a potential approval of a new ETF could be a tailwind for Dogecoin.
Most people have more money in their retirement accounts and brokerage accounts than in their cryptocurrency portfolios, assuming they hold any crypto directly. Weakening some of the walls preventing money from flowing between these different places will likely result in a bit more money flowing into the cryptocurrencies in question.
This does not mean that Dogecoin is go to the moon Again. This doesn’t change the fact that it is a speculative meme coin with relatively unpredictable price action over any given time period.
This is not an investment you are in until you have properly diversified your portfolio and attended to your (much) larger financial goals like building an emergency fund and paying off debt with high interest rates. It is also not suitable for short-term holding, as it would be far too close to play for a serious investor to approach.
However, if ETFs gain approval, it would help investment thesis for Dogecoin. Although the asset lacks fundamentals to determine its fair market value with any measure of confidence, after surviving for over 10 years, it is clear that this meme coin is not going to zero, although it could easily lose 80% of its value.
Additionally, if more money can move from traditional financial accounts to DoGECOIN, this could help support a floor for the coin’s price.
Right now, the ETF should only consider your decision as a potential bonus that could drive somewhat higher prices in the future, not as an ambrose for volatility and high risks that are associated with investing in any meme coin.
Therefore, if you desperately need to gain some exposure to the coins, it is acceptable to invest a very small portion of your portfolio in Dogecoin, provided you have already covered the most important financial goals thoroughly. described above.
Remember: if you’re not willing to hold on to your Dogecoin for a few years, an ETF won’t be much help, although it might make it a little more convenient for you to track – if approved.