- Bitwise’s Dogecoin ETF filing signals a serious effort to legitimize the memecoin, potentially attracting institutional investors and increasing its market credibility.
- Dogecoin’s recent surge is fueled by its link to the D.O.G.E. agency, led by Elon Musk, and growing institutional interest.
Amid the rising demand for meme-based cryptocurrencies, Bitwise has filed a proposal for a Dogecoin exchange-traded fund (ETF). The registration was officially submitted late Wednesday in Delaware and was later confirmed by Bitwise. While ETF filings can sometimes appear speculative, the news marks a serious push to legitimize Dogecoin in the financial market.
Bitwise Doge ETF likely coming soon.. and yes I checked and this is def legit (vs some whack job committing forgery for a quick pump a la BlackRock XRP that one time). pic.twitter.com/MxoswD0IFy
— Eric Balchunas (@EricBalchunas) January 22, 2025
The filing arrives as Dogecoin continues to enjoy its status as the world’s largest memecoin, boasting a market capitalization of $51.60 billion as of Thursday. Having tripled in value over the past year, Dogecoin’s growth is now linked to speculative trends and its newfound connection with the Department of Government Efficiency (D.O.G.E.), a U.S.-based non-governmental agency.
The D.O.G.E. agency, helmed by technocrat Elon Musk, aims to cut government spending and streamline federal operations. Officially proposed in mid-October, it was recognized during President Donald Trump’s swearing-in ceremony earlier this week. Traders have drawn parallels between the agency’s initials and the memecoin, further fueling Dogecoin’s popularity.
Dogecoin’s Potential Institutional Backing — Will It Gain Credibility?
If approved, the ETF could provide Dogecoin with the institutional backing that has long eluded the cryptocurrency. Such recognition by the Securities and Exchange Commission (SEC) would potentially lure conservative investors, offering a new dimension of credibility to what began as a joke token in 2013.
Created by software engineers Billy Markus and Jackson Palmer, Dogecoin initially made waves for its Shiba Inu logo and lighthearted origins. Over time, it has evolved into a significant player in the crypto space, often mimicking Bitcoin’s price trends. With over $50 billion in inflows to Bitcoin ETFs last year, even a fraction of that demand could significantly elevate Dogecoin’s position.
Bitwise’s ETF filing follows similar moves by Rex Shares and Osprey Funds, both of which have expressed interest in crypto-based ETFs. These efforts reflect the broader trend of institutional adoption within the cryptocurrency market, a shift that could define Dogecoin’s next chapter.
Elon Musk and the D.O.G.E. Factor
The Department of Government Efficiency has significantly influenced Dogecoin’s recent revival. Earlier this week, the agency’s official website briefly displayed the Dogecoin logo but later returned to showcasing only its name, as we reported earlier. The perceived link between Elon Musk’s agency and the cryptocurrency has fueled optimism among investors.
Nate Gercai, President of ETF Store, highlighted the surprising absence of filings for a Dogecoin ETF. In a January 15 post on X, he emphasized Dogecoin’s position as the seventh-largest digital asset by market capitalization.
“7th largest digital asset by market cap. Worst case, it’s a marketing expense for the issuer. Best case, you get an extremely lenient SEC who approves it, along w/ Elon touting it,” said Nate Gercai.
The alignment of Dogecoin’s popularity with Musk’s involvement in the D.O.G.E. initiative has positioned the memecoin as more than just a speculative asset. It now carries symbolic weight, embodying both government reform and the mainstreaming of cryptocurrencies.
