With Trump set to lead a crypto-friendly White House, will 2025 give rise to a Dogecoin (DOGE) ETF?
The approval of Bitcoin and Ethereum spot ETFs for trading in the U.S. can be considered the biggest news in the crypto and traditional financial markets for 2024. With Trump set to lead a crypto-friendly White House, will 2025 give rise to a Dogecoin (DOGE) ETF?
ETF platform ETF Store President Nate Geraci stated: "Under the new government, I think everything is an option that can be pushed on 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 approval pathway for more cryptocurrency spot ETFs should become clearer.
Fund managers are working hard to accelerate the launch of new ETFs. The stock exchange Cboe BZX submitted four applications related to Solana funds last week, and some experts believe that a Solana ETF is expected to be listed 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 likelihood of a Dogecoin DOGE ETF is much smaller, as Wall Street prefers assets that were not born from memes.
Although Dogecoin was originally born from a joke, it has grown to become the 7th largest cryptocurrency by market capitalization. According to CoinGecko's market data, as of writing, Dogecoin's trading price is about $0.43, with a market value close to $64 billion.
Bloomberg ETF analyst Eric Balchunas stated: "Today's satire is tomorrow's ETF." "You might ask, is Dogecoin too far off? I think we will see it, as some people will say, why not give it a try?"
Two Prime Digital Assets CEO Alexander Blume stated that there will definitely be fund companies applying to issue a Dogecoin ETF, "As the Bitcoin ETF has been very successful, innovative financial firms will seek to create any potentially successful product. But whether they can get approved is another matter."
Dogecoin may struggle to prove it is a fair market, as holdings are highly concentrated among Dogecoin holders. However, Alexander Blume stated that he believes under Trump's administration, the overall regulation from the SEC will be more lenient, "thus they might get approved earlier than we expect."
SEC Chairman Gary Gensler is viewed 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 space. He revealed earlier that ending the suppression of the crypto sector will help it mature and move towards a more prosperous development period.
