Canary Capital Snubs Dogecoin ETF, Here’s Why

Dogecoin ETF Faces Doubts Amid Lack of Utility and Unlimited Supply

The cryptocurrency market could potentially welcome a new exchange-traded fund (ETF) tracking Dogecoin (DOGE). Asset managers in the United States are reportedly preparing to launch such a product. However, Canary Capital, a leading investment firm, has expressed hesitation in joining the DOGE ETF bandwagon.

Concerns Raised over DOGE's Lack of Utility and Unlimited Supply

According to a recent report, Steven McClurg, CEO of Canary Capital, stated that the firm is not interested in launching a spot DOGE ETF due to several concerns. Firstly, he highlighted the lack of utility for Dogecoin in the broader cryptocurrency landscape. Secondly, he pointed to the memecoin's unlimited supply.

McClurg argued that due to its design, Dogecoin's value will continue to depreciate as its supply increases. Consequently, he does not consider it suitable for an ETF product, given its unlimited supply.

Canary Capital Sets Sights on XRP, Solana, and Other Crypto ETFs

Despite its reluctance regarding DOGE, Canary Capital is reportedly actively pursuing other crypto ETF products. The firm's interests include Ripple (XRP) and Solana (SOL).

Solana, unlike DOGE, has utility as it facilitates transaction fees on its network. Notably, SOL was recently utilized in trading the popular Trump memecoin, leading to an increase in its value and network activity.

Asset Managers Bank on Dogecoin's Loyal Community

Despite its lack of utility, Dogecoin boasts a dedicated fan base, including Tesla founder Elon Musk. Musk's frequent endorsements have often triggered bullish sentiments in the cryptocurrency community.

This strong following, coupled with recent developments in the United States regulatory landscape, has likely prompted asset managers to consider a DOGE ETF. Grayscale, a prominent investment firm, has launched a Dogecoin Trust and filed an application to convert it into a spot ETF.