Dogecoin (Crypto: Doge) I have just been exposed to what could become a new strong rear wind. Even if it will take at least a few months for it to develop, it could provide the king with additional liquidity, which could increase the price for a while, in the best conditions.
But does this new possibility make the token interesting to invest for those who do not already hold it? Let’s examine what is going on and if it changes the situation.
Start your mornings more intelligently! Wake up with Breakfast news In your mailbox every market day. Register for free “
This new investment vehicle could allow more liquidity to flow
Cryptocurrencies tend to prosper when they have enough fresh money. capital Afflunker of new buyers. It is obvious that injecting fresh money in an asset leads to an increase in the price.
With this in mind, Dogecoin has been around for years now. Investors who wanted to buy and keep it had many opportunities to do so, both when prices were low and during periods as currently, where prices are high. However, it is a bit complicated to invest in the area compared to something like an action, which can prevent certain investors from buying.
Providing these potential investors with a new path to invest within the limits of the traditional financial system could be a means for the price of Dogecoin to continue to increase.
And that’s exactly what several asset managers think Stock market negotiated funds (FNB) have sought to do with it.
According to a series of regulatory documents filed at the end of January, companies such as Osprey Funds and Bitwise Asset Management wish to create ETF Dogecoin, allowing investors with traditional financial accounts to easily buy an asset that corresponds to the development of prices of cryptocurrency. From now on, a number of technical obstacles make it difficult to buy Dogecoin for these investors.
These companies have also requested authorization to offer ETFs for other major coins, such as Bonk and the official play of Trump currently hosted on Solara With the TV Trump TV.
But, assuming that the Dogecoin ETF is approved by regulators at Safety and exchange commission (sec)Is it important for investors?
The “fundamentals” will remain the same here
It is undeniable that the potential approval of a new ETF could be a favorable wind for Dogecoin.
Most people have more money in their retirement accounts and brokerage accounts than in their cryptocurrency portfolios, assuming that they directly hold any crypto. The weakening of certain walls preventing money from circulating between these different places will likely lead to a little more money invested in the cryptocurrencies in question.
This does not mean that dogecoin is go on the moon Again. This does not change anything either that it is a speculative coin with a relatively unpredictable prices during a given period.
This is not an investment in which you can get started as long as you have not properly diversified your portfolio and achieve your (much) greater financial objectives, such as the constitution of an emergency fund and the reimbursement of the debt at high interest rates. It is not suitable for short -term detention either, because it would be far too close to the game for a serious investor to approach it.
However, if the ETFs were approved, this would contribute to Investment thesis For Dogecoin. Although the asset lacks fundamentals to determine its fair market value with certainty, after having survived for more than 10 years, it is clear that this room will not reach zero, even if it could easily lose 80 % of its value . value.
In addition, if more money could circulate traditional financial accounts to Dogecoin, this could help maintain a floor for the price of the room.
Currently, the ETF should only be taken into account in your decision as a potential bonus that could raise prices a little more in the future, and not as a kind of ambrosia for volatility and High risks associated with investment in any coin.
Therefore, if you desperately want to expose yourself to the parts, it is acceptable to invest a very small part of your portfolio in Dogecoin, provided that you have already exhaustively covered the most important financial objectives described above.
Remember: if you are not ready to keep your Dogecoin for a few years, an ETF will not be of great help, even if it could facilitate follow -up – if it is approved. .
Should you invest $ 1,000 in Dogecoin now?
Before buying Dogecoin shares, consider this:
THE Actions Advisor Motley Fool The team of analysts has just identified what she thinks is the 10 Best Actions For investors to buy now… and Dogecoin was not part of it. The 10 selected actions could produce monster yields in the coming years.
Consider when Nvidia made this list on April 15, 2005 … if you had invested $ 1,000 at the time of our recommendation, You would have $ 874,051!*
Actions Advisor Provides investors with an easy -to -follow success plan, including advice on the creation of a portfolio, regular updates for analysts and two new securities selections each month. THE Actions Advisor Service has More than quadrupled The return of the S&P 500 since 2002*.
*Stock Advisor returns from January 21, 2025
Alex Carchidi has positions in Solana. The Motley Fool occupies positions and recommends Solana. The Fou Motley has a Disclosure policy.
The points of view and opinions expressed here are the author’s points of view and opinions and do not necessarily reflect those of Nasdaq, Inc.