REX Shares, a financial services company known for its innovative approach to ETFs, recently filed for ETFs tied to a few cryptocurrencies, including Dogecoin. These records mark a pivotal moment for Dogecoin amid the current hype in the crypto market, with bullish sentiment now at a multi-year high.
New ETF filings take the market by storm
The crypto industry has been full of excitement in recent days leading up to and following the inauguration of the new US president Donald Trump. This excitement has dramatically changed the price action of many cryptocurrencies.
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Amidst this intense diversity, asset management companies REX Advisers and Osprey Funds have jointly submitted filings to the US Securities and Exchange Commission (SEC) seeking approval to launch seven new cryptocurrency ETFs. These ETFs are designed to give exposure to a range of digital assets, including established tokens like Solana and Ripple's XRP, as well as meme coins like Dogecoin and even the TRUMP coin launched from recently.
ETFs are currently in its infancy in the crypto industry because of the success of Spot Bitcoin ETFs that was launched in the US early last year. Their widespread success it marked a turning point for institutional investment in crypto. After their success, Spot Ethereum ETF also entered the market, paving the way for discussions about spot ETFs for other digital assets, Mostly XRP and Solana.
Interestingly, the new ETF filings by REX could be seen as an attempt to take advantage of the growing interest in diverse crypto assets and test the evolution position the SEC under the new crypto-friendly leadership. Bloomberg ETF senior analyst Eric Balchunas highlighted the growing interest in this space, note that the number of crypto ETF registrations with the US SEC now reached 33almost doubling since Gary Gensler resigned as the regulator's chairman last Friday.
What does Dogecoin ETF mean for Dogecoin?
In particular, the nature of the files means that these could potentially hit the market very soon in the next 75 days. Dogecoin, for one, is expected to get the most benefit from ETF hitting the market. This is because recent crypto market dynamics have made Dogecoin the go-to digital currency for retail investors as Bitcoin continues to grow as an option for institutional investors.
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Historically, Dogecoin has shown its ability to rally quickly behind positive trends, such as Elon Musk's tweets and listings on major exchanges. If the Dogecoin ETF is approved, it could attract large inflows from new investors. This, along with the community support for Dogecoin, could pave the way for a significant price increase above $1. Crypto analysts are already predicting that Dogecoin will break the $1 mark in this cycle, noting various technical indicators and patterns to support this prediction.
At the time of writing, Dogecoin is trading at $0.364, up by 5.1% in the last 24 hours. A $1 gain from the current level would represent a 175% price increase.
Featured image from Unsplash, chart from Tradingview.com
