Grayscale Considers Expanding Its Offerings to Include Dogecoin-Based Products

Crypto asset management giant Grayscale has recently announced its consideration of expanding its offerings to include products based on the popular meme cryptocurrency

Crypto asset management giant Grayscale has recently announced its consideration of expanding its offerings to include products based on the popular meme cryptocurrency, Dogecoin. In a recent blog post, Grayscale highlighted that Dogecoin has caught the company’s attention as a potential asset for future investment products.

As the king of meme coins, a Dogecoin-based crypto product would be a turning point for the entire meme coin niche.

Recently, Grayscale filed an application with the SEC for a Bitcoin Spot ETF, which was ultimately rejected. However, the company’s recent blog post may indicate a shift in strategy towards offering products based on other popular cryptocurrencies, including meme coins.

In the blog post, Grayscale outlined its approach to selecting cryptocurrencies for its investment products, which involves considering a wide range of factors such as market capitalization, liquidity, regulatory considerations, and technological innovation.

According to the blog post, Dogecoin is one of a few cryptocurrencies currently under consideration for Grayscale. Grayscale broke down its list of cryptocurrencies under consideration into five primary categories: currencies, smart contract platforms, financials, culture, and utilities.

Most of the assets under review fall within the categories of smart contracts and utilities, which focus on blockchain technology innovations and practical applications. However, Dogecoin stands out, as it has been placed in the “consumption and culture” category, which covers cryptocurrencies that cater to consumer-driven activities.

In the blog post, Grayscale also highlighted the growing popularity of meme coins among retail investors, particularly during the recent bull market of 2021. According to the company, meme coins have attracted a significant following due to their potential for rapid price appreciation and their alignment with broader cultural trends.

Grayscale noted that meme coins have largely remained a separate category from mainstream cryptocurrencies, with limited institutional involvement. However, the company believes that this dynamic could be shifting, especially with the recent interest in meme coins among some of the world's largest asset managers.

If Grayscale were to launch a Dogecoin product, it would mark a significant turning point for the meme coin. With Grayscale boasting over $10 billion in assets under management, a Dogecoin product would open the door to substantial inflows of capital from traditional investors, who have previously shown interest in meme coins but hesitated to directly invest.

Moreover, an institutional product for Dogecoin could help legitimize the meme coin and other meme-related cryptocurrencies in the eyes of traditional investors. This, in turn, could lead to increased interest and investment in the broader meme coin niche.

On the other hand, the Dogecoin blockchain has been buzzing with activity in the past seven days. According to recent on-chain data, this surge in network participation has pushed the number of daily active addresses on the Dogecoin network to its highest point in eight months.

At the time of writing, Dogecoin is trading at $0.1188 and has increased by 2.4% in the past 24 hours. Notably, the Dogecoin trading volume has increased by 42% in the same time frame, which also points to a surge in activity on the blockchain.

The Dogecoin price has also increased by 16% in the past 30 days and is now on the verge of breaking through an order block of $0.12 on October 1. A break above this level would put Dogecoin towards a minimum target of $0.129.

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