Dogecoin is making headlines once again. The reason? The Securities and Exchange Commission has officially acknowledged Grayscale’s filings for a spot Dogecoin exchange-traded fund (ETF), the Grayscale Dogecoin Trust. This marks the beginning of the SEC’s review process, which could potentially bring the Dogecoin ETF to the stock exchanges.
For crypto enthusiasts, this is a significant milestone. The largest crypto asset manager backing the most popular memecoin underscores how far Dogecoin has come—from a joke to a potential mainstream investment vehicle.
“It’s remarkable and is an enduring testament to the power of crypto communities, said Noelle Acheson, a crypto analyst and author of the “Crypto is Macro Now” newsletter.
She noted in her email to Quartz that Doge’s success is a reminder that public networks belong to the market, which ultimately determines their success, not any individual team or entity.
On Wednesday, Dogecoin was hovering at $0.25 per coin, marking a 2% increase in the past 24 hours.
Created as a joke by software engineers Billy Markus and Jackson Palmer in 2013, Dogecoin features the likeness of the Shiba Inu dog popularized in the Doge meme. But since then, Dogecoin has transformed into one of the world’s most valuable cryptocurrencies.
Doge’s success can largely be traced to the GameStop saga when a group of small investors, encouraged by the Reddit community “WallStreetBets” and helped along by an Elon Musk tweet, skyrocketed GameStop (GME-3.23%) shares to $86.88 in January 2021.
On Reddit, investors later discussed what cryptocurrency was equivalent to GameStop — and the answer was Dogecoin. Just as GameStop reached its peak, Dogecoin started to gain traction, peaking in May 2021 at $0.74 per coin.
After the GameStop saga, another event sent Dogecoin soaring: Elon Musk tweeted “Doge” in February 2021. The price of Dogecoin surged dramatically, and crypto enthusiasts suddenly became interested in Dogecoin.
Later that year, Musk hosted NBC’s (CMCSA+0.48%) “Saturday Night Live” and called himself a Dogefather. He continued promoting Dogecoin on various platforms, leading to its inclusion in the top 10 cryptocurrencies by market capitalization.
Musk once said Doge is his favorite cryptocurrency because “it has the best humor and it has dogs.”
Moreover, when President Donald Trump was re-elected, he announced that Musk would lead the “Department of Government Efficiency,” or DOGE—effectively a non-governmental group that will consult on spending. This further solidified Musk’s relationship with Dogecoin.
Given the strong backing Dogecoin has received from the crypto community and Elon Musk, it’s natural to wonder: Will the SEC approve a Dogecoin ETF?
Just a few years ago, the idea of Bitcoin ETFs seemed far-fetched. Yet, after securing SEC approval in January 2024, Bitcoin ETFs have become the most successful in history, even surpassing gold ETFs.
However, SEC approval is far from guaranteed. The SEC Commissioner, Hester Peirce, a known crypto advocate, recently warned investors about the risks of memecoins, emphasizing that they don’t fall under the SEC’s purview.
Moreover, for an ETF to gain approval, several factors come into play, including price tracking, market liquidity, anti-manipulation safeguards, etc.
According to Acheson, a Dogecoin ETF could happen — but not anytime soon. She believes the market isn’t ready, and premature approval could raise concerns rather than confidence.
For now, Acheson finds it encouraging that the SEC is at least acknowledging these applications and considering some of the more unconventional ones.
While approval remains uncertain, experts say a Dogecoin ETF could reshape the investment landscape.
“It would be huge,” Acheson said when asked about the potential approval of a Dogecoin ETF.
If the SEC gives Dogecoin ETF the green light, it would mark a significant financial and cultural milestone — not just for the crypto space but for mainstream finance as well. Such an approval could pave the way for more community-driven assets to enter institutional portfolios, redefining what qualifies as an investable asset.
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