Dogecoin's Current Market Value and Potential
Although Dogecoin was initially created as a joke, it has now developed into the seventh largest cryptocurrency, with a market value of approximately $62 billion (9.3 trillion yen). Bloomberg's Eric Balciunas stated that a Dogecoin ETF is possible, saying, "Today's meme is tomorrow's ETF."
Meanwhile, Wall Street analysts remain cautious about the approval of a Dogecoin ETF. Louis Sykes from All Star Charts pointed out, "Wall Street doesn't like assets that are born from memes," and believes the chances of a Dogecoin ETF are lower than those of Solana (SOL), which I am assessing.
At the same time, Alexander Blum, CEO of Two Prime Digital Assets, predicts that entrepreneurial financial firms will "definitely" apply for a Dogecoin ETF. However, he also expressed a cautious view, believing that approval is another matter. The large holding structure of Dogecoin is highly concentrated, making it difficult to prove it is a fair market.
Current SEC Chairman Gary Gensler plans to retire on January 20, 2025, marking a significant turning point for the cryptocurrency industry. Elected President Trump is also considering appointing former Commodity Futures Trading Commission (CFTC) Chairman Chris Giancarlo as the country's first "cryptocurrency envoy."
These developments suggest that the regulatory environment for digital assets in the U.S. may see significant progress. Giancarlo has previously criticized Gensler's negative stance on cryptocurrencies, claiming it stifles the development of the sector, and expressed hope for a new regulatory environment. In this context, the approval of a Dogecoin ETF may hold symbolic significance beyond investment products.
