DOGE prices surge on the back of spot ETF optimism

Dogecoin Soars with Renewed ETF Optimism

Dogecoin (DOGE) has experienced a 5% surge on Friday, buoyed by renewed enthusiasm surrounding the potential approval of a spot Dogecoin exchange-traded fund (ETF).

The recent rally followed the US Securities and Exchange Commission (SEC) officially acknowledging filings by Grayscale to list a DOGE ETF. On February 13th, the SEC acknowledged Grayscale's Form 19b-4 filings for the Grayscale Dogecoin Trust, alongside an XRP Trust, initiating the regulatory review process.

According to Polymarket data, the likelihood of a Dogecoin ETF approval has jumped to 62%, a significant increase from 27% in January. However, the probability of approval before July 31st stands at 33%.

Market Impact of Potential ETF Approval

"The SEC has accepted ETF applications for XRP and Dogecoin, adding to a growing list of altcoin ETF reviews. If approved, these products could significantly expand institutional access to altcoins, increasing liquidity and potentially setting the stage for an alt-season later this year," stated crypto analyst Valentin Fournier.

Dogecoin's Advantages in ETF Considerations

Unlike XRP, Dogecoin benefits from a lack of regulatory scrutiny regarding its status as a security. Its similarities with Bitcoin, which the SEC has already approved for ETF products, strengthen its case.

Multiple companies, including Rex Osprey and Bitwise, have also filed for Dogecoin ETFs. Market observers anticipate further filings as the regulatory process unfolds.

Positive Sentiment and SEC's Pro-Crypto Stance

Positive sentiment towards ETF approvals for crypto assets has grown since President Donald Trump's entry into office. Financial institutions believe that the SEC under Gary Gensler is adopting a more crypto-friendly approach and may approve more ETFs in the near future.

Bloomberg ETF analysts James Seyffart and Eric Balchunas estimate a 75% chance of a Dogecoin ETF approval by the end of 2025.

Dogecoin's Historical Growth and Comparison to Bitcoin

Dogecoin launched in December 2013 at $0.00056. As of today, it trades at $0.2725, representing a 48,560.71% increase from its debut price.

In comparison, Bitcoin was valued at approximately $1,200 when Dogecoin was launched. While Bitcoin has maintained a more stable growth trajectory, trading above $97,000, its growth (7,990%) has been significantly lower than Dogecoin's.

Dogecoin's Unlimited Supply and Critics

Despite its price gains, Dogecoin's unlimited supply has drawn criticism as a potential barrier to its value as a store of value. Unlike Bitcoin's fixed 21 million coin supply, Dogecoin has no cap, leading some critics to question its long-term holding ability.

Technical Analysis and Market Outlook

Technical indicators on TradingView suggest a bullish trend for Dogecoin. Its Relative Strength Index (RSI) is at 70.27, indicating overbought conditions. The Average Directional Index (ADX) at 55.19 reinforces the current upward momentum.