As Trump is set to lead a crypto-friendly White House, will 2025 see the birth of a Dogecoin (DOGE) ETF?
The approval of Bitcoin and Ethereum spot ETFs in the U.S. can be said to be the biggest news in the crypto and traditional financial markets for 2024. As Trump is set to lead a crypto-friendly White House, will 2025 see the birth of a Dogecoin (DOGE) ETF?
Nate Geraci, president of ETF platform ETF Store, stated: "Under the new government, I believe everything is an option that can be pushed to the table."
President-elect Trump claims to be a leader who supports cryptocurrencies, hoping to make the U.S. the 'Bitcoin capital of the world.' He even established the 'Department of Government Efficiency' (DOGE, named after Dogecoin), led by Dogecoin superfan and billionaire Elon Musk. Nate Geraci stated
The market's expectation is that the new government will quickly take action to designate which crypto assets are securities and which are not. Once such a framework is established, the path for more cryptocurrency spot ETFs to be approved should become clearer.
Fund managers are working hard to accelerate the launch of new ETFs. The Cboe BZX exchange submitted four applications related to Solana funds last week, and some experts believe that Solana ETF is expected to be launched in 2025. Cryptocurrency analyst Louis Sykes stated:
I am quite confident that we will see Solana ETF trading in the first half of 2025. The chances of a Dogecoin DOGE ETF are much smaller, as Wall Street prefers assets that were not born out of memes.
Although Dogecoin was initially created as a joke, it has grown to become the 7th largest cryptocurrency by market capitalization. According to CoinGecko market data, as of writing, Dogecoin's trading price is about $0.43, with a market cap nearing $64 billion.
Bloomberg ETF analyst Eric Balchunas stated: "Today's satire is tomorrow's ETF." "You can ask, is Dogecoin too far off? I think we will see it, as some will say, why not give it a try?"
Alexander Blume, CEO of Two Prime Digital Assets, stated that there will certainly be fund companies applying to issue a Dogecoin ETF, "Due to the great success of Bitcoin ETFs, innovative financial companies will seek to create any product that could succeed. But whether they can get approved is another matter."
Dogecoin may struggle to prove it is a fair market, as ownership of Dogecoin is highly concentrated. However, Alexander Blume stated that he believes under Trump's administration, the SEC's overall regulation will be more lenient, "therefore they may get approved sooner than we expect."
SEC Chairman Gary Gensler is seen as a thorn in the side of the cryptocurrency industry, and he plans to step down on January 20, 2025.
On the other hand, former CFTC Chairman Chris Giancarlo is expected to become the first 'Crypto Czar' in the U.S., responsible for policy in the cryptocurrency field. He earlier revealed that ending the suppression of the crypto sector would help it mature and move towards a more prosperous development period.
