Dogecoin Prices Rise Despite ETF Delays
On Friday, Dogecoin saw an uptick in its value, even though the launch of its U.S. Exchange-Traded Fund (ETF) was postponed again, as noted by analysts from Bloomberg.
Data from Coinmarketcap shows that Dogecoin (Doge) increased by nearly 4% within the last 24 hours, hitting $0.2603. This rise occurred despite Eric Balknass, a senior ETF analyst at Bloomberg, stating that the launch of U.S. Doge ETFs faced further delays as of Thursday.
The Securities and Exchange Commission (SEC) announced on September 8 that the Rex-Soprey Doge ETF was expected to be listed alongside the official ETFs for assets like Bitcoin and XRP on September 12.
Earlier this month, the Doje ETF received approval under the Investment Companies Act of 1940, which is typically utilized for mutual funds and diversified ETFs. This approval is noteworthy as it differs from Bitcoin ETFs that follow the Securities Act of 1933.
Balknass shared with Cointelegraph that he was informed of the delay by the company behind the ETF, but they did not provide specific reasons for it.
Analysts suggest that the ETF might not significantly influence Dogecoin’s prices, with expectations that those interested in Dogecoin already hold accounts on crypto exchanges. Balchunas mentioned, “The further you are from BTC, the less assets you have.”
However, he anticipates that four to five Dogecoin ETFs could be released in late October or November, noting that increased ETF activity tends to have a positive effect on the market.
Balknass also pointed out that this ETF structure differs from typical crypto ETFs since it doesn’t hold Dogecoin directly. Instead, it relies on a subsidiary based in the Cayman Islands and derivatives. This is in accordance with the 1940 law, which requires an element of diversification.
Speculation Surrounding Dogecoin ETF
The approval of this ETF appears to be groundbreaking, as Balknass remarked on X, suggesting it could be the first U.S. ETF to hold an asset without a clear utility. Typically, the industry reacts positively to new crypto ETF approvals, but this situation has drawn some skepticism. Critics argue that the Memecoin Fund promotes speculation and imposes fees on investors that could be avoided by purchasing Dogecoin directly.
Increased Institutional Attention for Dogecoin
Dogecoin, the original Memecoin, is attracting more attention from institutional investors. Recent reports indicate that Cleancore Solutions, a manufacturer of ozone cleaning systems, has achieved half of its Dogecoin acquisition targets after making a $130 million purchase this week.
This move follows Cleancore Solutions’ plans to raise $175 million through private property, with proceeds directed toward acquiring more Dogecoin. This offer successfully concluded on September 5, just two days after it was announced.
Additionally, Thumzup, a media corporation linked to the Trump network, revealed intentions to buy 3,500 Dogecoin mining rigs, describing the Memecoin as “one of the most widely held cryptocurrencies.”
