Dogecoin ETF Filing Sparks Surprise as DOGE Slips Back to $0.3500

Bitwise Submits Filing for Dogecoin ETF

Asset manager Bitwise recently filed a registration statement for a Dogecoin exchange-traded fund (ETF). This follows similar filings by investment firms Rex Shares and Osprey Funds for cryptocurrency ETFs, including one for Dogecoin.

Market Reaction

Despite the generally positive sentiment associated with ETF filings, the announcement did not lead to the anticipated price increase. Instead, DOGE's value dropped 5%, surprising market participants.

Legal Filing Details

The registration for the "Bitwise Dogecoin ETF" was filed with the Delaware Division of Corporations. This step precedes the submission of a formal ETF proposal to the Securities and Exchange Commission (SEC).

Potential Market Impact

Increased demand could drive up DOGE prices if the ETF attracts even a small portion of the inflows seen in Bitcoin ETFs. Dogecoin is the eighth largest cryptocurrency with a market capitalization of $51.16 billion.

Historical Performance

Dogecoin has more than tripled in value over the past year, buoyed by Bitcoin's gains and the recent establishment of the Department of Government Efficiency (D.O.G.E.) in the United States.

Recent Price Decline

At the time of writing, Dogecoin was down 5.61% in the last 24 hours to $0.346, amidst a broader market sell-off. liquidations for various crypto assets totaled $252 million in the same period.

Technical Analysis

Dogecoin fell below its 50-day moving average (SMA) of $0.366 during Wednesday's trading session. Declines continued, leading to lows of $0.3455 today.

Bulls could attempt to push the price higher towards $0.40 or $0.43 if it rises above the 50-day SMA. Further declines could lead to a test of support at $0.31.

Macroeconomic Outlook

Investors are now awaiting the Federal Open Market Committee meeting on January 28-29, where interest rate decisions may be announced. In December, the Fed outlined plans for two rate cuts in 2025, indicating a cautious approach.