How High Could Dogecoin Price Climb with a DOGE ETF Approval?

If a Dogecoin (DOGE) ETF were approved, it would affect the positively price of DOGE since ETFs are considered less risky compared to normal crypto assets and stocks.

The approval of a DOGE Exchange-Traded Fund (ETF) could have a significant impact on the price of Dogecoin (DOGE). ETFs are generally perceived as less risky compared to directly holding crypto assets or stocks. As a result, traditional investors seeking exposure to DOGE without navigating the market volatility may opt to invest in a DOGE ETF. This could lead to a surge in demand for DOGE, potentially pushing its price to new highs.

However, it's important to note that the approval of a DOGE ETF may not guarantee a straightforward price increase. To better understand how DOGE's price might perform, we can examine the performance of the only two existing crypto ETFs: the spot Bitcoin ETF and the spot Ethereum ETF.

When these two ETFs were approved on January 10 and July 23, respectively, it was largely a "sell-the-news" event, with most having bought the rumor leading up to the approval. While Bitcoin later regained momentum and made a new all-time high in the following two months, Ethereum has consistently lost ground since its ETF began trading.

Hence, DOGE's price may follow a trajectory similar to either of these two assets in the event of an ETF approval. However, considering that DOGE falls under a unique category (meme coin), the impact could be exponentially greater. Meme coins are typically known to experience explosive price surges, often reaching thousands of percent gains, compared to a few hundred percent for utility coins.

DOGE's Price Scenario If A Dogecoin ETF Were Approved

Dogecoin is currently the 9th largest crypto asset by market cap, with $1.5 billion in trading volume, which is 5.11% of Bitcoin's total daily trading volume ($30 billion), according to CoinGecko.

5.11% of the total Bitcoin ETF volume ($21.15 billion) is around $1.08 billion. Given the current price and market cap, it would take roughly $200 million in trading volume to push the Dogecoin price up by just 1%, as per our calculations.

The above is the detailed content of How High Could Dogecoin Price Climb with a DOGE ETF Approval?. For more information, please follow other related articles on the PHP Chinese website!