Price data comes from Decrypt’s Art, Fashion, and Entertainment Hub.
Let’s talk about SCENE. Will the biggest meme coin in crypto make its mark on Wall Street? After the recent approval of spot Bitcoin and Ethereum ETFs, asset managers are jumping in. They’re filing applications for products that let investors access digital assets through regular brokerage accounts.
Bloomberg ETF analyst Eric Balchunas believes firms will keep pushing boundaries. He even suggested that Dogecoin might get its own spot ETF. “The ETF industry is known for trying all sorts of things,” he shared with Decrypt. “I wouldn’t be surprised to see attempts for DOGE.” He added that he’s surprised a Dogecoin ETF hasn’t been filed yet.
This year, spot Bitcoin ETFs received approval. But remember, the first application was submitted over a decade ago, facing many legal hurdles. The SEC also approved spot Ethereum ETFs this year, which caught many off guard. Now, it’s uncertain how they will handle future crypto ETF applications.
Juan Leon, a Senior Investment Strategist at Bitwise, told Decrypt that the SEC has historically scrutinized crypto ETF applications closely. This makes it tough for assets like Dogecoin to get approved under the current administration. The SEC usually looks for a regulated futures market and enough liquidity in the spot market for digital assets when reviewing applications. Leon pointed out that, under the current SEC framework, “Doge wouldn’t meet those qualifications.”
However, if SEC Chair Gary Gensler resigns after a potential Donald Trump win, Leon thinks the SEC might take a more relaxed approach to approvals. Still, he expects that applications for Ripple (XRP), Solana (SOL), and Avalanche (AVAX) will come first since these tokens have utility and aren’t viewed as a $55 billion joke. “If there’s regulatory clarity, we could see issuers go after a Doge ETF, and I could see it getting approved eventually,” Leon said. “There’s definitely demand from retail investors, which could attract issuers.”
As Election Day approached, several asset managers filed for spot ETFs related to Ripple, Solana, and Litecoin. These applications went in during October, but the SEC hasn’t responded yet. So far, no firm has submitted a Dogecoin ETF application, even outside the U.S.
Rayhaneh Sharif-Askary, Head of Product and Research at Grayscale, mentioned that Dogecoin is the largest asset in their Consumer and Culture Crypto Sector. She sees it as a leader in media and entertainment. While Dogecoin has a playful side, it’s also been used as a peer-to-peer currency. “Memes have been around forever,” she noted, recalling cave paintings and Roman graffiti. “While it was easy to dismiss meme coins before, it would be irresponsible to ignore DOGE’s real usage on-chain and the actual role it plays.”
Grayscale is keeping a close eye on Dogecoin as a potential ETF candidate. Although it’s not included in any of Grayscale’s current products, they mentioned in an October blog post that Dogecoin is “under consideration” for future offerings.
Dogecoin hit a peak of $0.4398 on the Binance exchange on Tuesday, its highest price in over three years. The Shiba Inu-themed meme coin surged by 143.2% in the past week, significantly outpacing Bitcoin’s (BTC) 28.2% gain during that time, according to CoinGecko data. This rally followed Donald Trump’s election win, boosting optimism for speculative assets like Dogecoin as traders bet on pro-crypto policies. Now, the challenge for DOGE is to maintain this momentum.
Tesla’s stock jumped 8% in after-hours trading as its Bitcoin holdings surpassed $1 billion. The electric vehicle maker’s investment in Bitcoin has proven lucrative. Tesla now holds over 11,509 BTC, which has appreciated significantly as Bitcoin reached an all-time high of $89,560, according to Arkham Intelligence. Back in February 2021, Tesla announced it purchased $1.5 billion in Bitcoin to diversify and maximize returns.
The crypto markets are on the rise, with Bitcoin crossing $89,000 on Monday. Institutional investment in digital assets is hitting new highs. Bernstein Research has issued a strong endorsement of the sector, advising clients to “buy everything you can,” according to a report released on Monday. Analysts Gautam Chhugani and Mahika Sapra attribute the market’s strength to a changing political climate in Washington, with new policy advisors expected to ease long-standing regulatory pressures.