Dogecoin (DOGE) breaks out over ETF talk, whales are accumulating

Dogecoin (DOGE) Soars as ETF Anticipation Grows

Dogecoin (DOGE) has surpassed the $0.41 mark amidst renewed speculation of an exchange-traded fund (ETF) launch later this year. Leading market maker Wintermute has called for an ETF based on the meme token and has placed a bet on DOGE.

Wintermute's 2025 outlook report suggests that the rise of meme tokens has eclipsted established altcoins. With institutional involvement, Wintermute anticipates that memes will gain sufficient recognition to warrant an ETF featuring one of their top assets.

Wintermute Predicts a DOGE ETF for 2025. | Source: Wintermute 2025 Outlook

The anticipation of increased DOGE exposure and mainstream investment has fueled the recent rally. DOGE has broken out above $0.41, reaching its highest range in a month. Expectations for a $1 rally have been rekindled as crypto adoption expands in 2025.

According to Wintermute, DOGE is the most likely candidate for an ETF due to its legacy and liquidity. DOGE remains a significant contributor to the meme ecosystem, accounting for 53% of its value.

While ShibaInu (SHIB) holds influence, Wintermute believes DOGE would be selected for a new fund. Wintermute has consistently emphasized the bullish potential of memes, facilitating trades for both established and emerging tokens. Notably, Wintermute's known wallet does not hold any DOGE.

Wintermute predicts that mainstream finance will embrace more tools for harnessing crypto earnings while mitigating volatility. The market maker expects 2025 to witness an expansion of ETF products, providing greater accessibility for mainstream investors.

Following the success of single-coin ETFs focused on BTC and ETH, Wintermute anticipates multi-asset products that track broader crypto markets. Some ETF products may even capture market trends, including memes.

Grayscale has indicated its consideration of DOGE as an asset under evaluation, without imposing a specific deadline for product development. While DOGE is readily accessible for mainstream buyers, an ETF could significantly increase new investments. Grayscale also highlighted DOGE in its recent report on the top 10 appreciating assets for the previous week. DOGE ranked closely behind XRP and Cardano (ADA), indicating buyer confidence in tokens poised for potential breakouts.

The likelihood of a DOGE ETF may be further enhanced if Litecoin (LTC) is also included in a mainstream fund. DOGE's mining mechanism linked to Litecoin blocks provides it with additional security.

Whales Fuel DOGE Rally

Recent gains in DOGE are attributed to renewed whale interest. Historically, large-scale investors have acquired DOGE due to its potential for appreciation.

Whales have injected $200M into the market during the DOGE rally, while exchange wallets have also increased their holdings. Significant whale transactions have shifted over 600M DOGE in a short time, extending the accumulation period.

The buying surge aligns with technical forecasts of a substantial price breakout as DOGE approaches $0.40. The XRP rally has also contributed to DOGE's momentum, with price predictions reaching $1.

Despite its ongoing daily supply growth, with 10,000 new coins minted every two minutes, DOGE remains a liquid asset with widespread listing and usage. Over 30% of the circulating supply is held by whales, while 143,872 wallets currently hold DOGE.