Could Dogecoin Be the First Memecoin to Get a Spot ETF?

The post Could Dogecoin Be the First Memecoin to Get a Spot ETF? appeared first on Coinpedia Fintech News

In the race to make a place in the spot ETF, many altcoins are putting their huge efforts after the approval of Bitcoin and Ethereum’s spot ETFs. While there is growing speculation that the largest meme coin by market cap Dogecoin (Doge) will make its mark on Wall Street? Analysts say that while regulatory challenges remain, the ever-evolving ETF market might soon open the door for a Dogecoin ETF.

Doge: Next Spot ETF In Line 

According to industry experts, Dogecoin ($DOGE) holds unique potential for a spot ETF, though it currently lacks some SEC requirements. Unlike Bitcoin and Ethereum, Dogecoin doesn’t have a regulated futures market, one of the factors the SEC typically considers for approving ETFs. 

https://twitter.com/scottmelker/status/1856513579337367836

However, analysts believe that changing dynamics within the SEC could reshape these regulatory standards, potentially easing Dogecoin’s path to a spot ETF.

Regulatory change May Allow Doge ETF

Meanwhile, Bitwise strategist Juan Leon note that gaining approval for a Dogecoin ETF under current regulations would be challenging. 

According to Leon, the SEC typically requires that any digital asset whether Bitcoin, Ethereum, or Dogecoin must have both a regulated futures market and significant liquidity in its spot market before it can qualify for a spot ETF. Given Dogecoin’s current market status, it does not yet meet these qualifications.

However, a change in SEC leadership could ease requirements, if Chair Gary Gensler resigns following a potential Trump election win, this will open the door for Dogecoin to secure a spot in ETF in the future.

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Dogecoin ETF: Closer Than You Think?

In addition to this Eric Balchunas, a senior ETF analyst at Bloomberg, has highlighted that the ETF industry is known for its experimental and evolving nature, which might allow assets like Dogecoin to be included in ETF offerings despite initial challenges.

Doge ETF incoming in 3.. 2.. 1..

— Eric Balchunas (@EricBalchunas) November 12, 2024

The SEC’s previous decisions, along with its gradual approval of ETFs for more cryptocurrencies, highlight a change toward greater acceptance of digital assets in traditional financial markets.

Analysts note that Dogecoin’s wide popularity and community support might add weight to its case, especially as the SEC continues to respond to growing interest in digital assets from both retail and institutional investors.