Could Dogecoin ETFs Become a Reality in 2025?

The success of Bitcoin and Ethereum ETFs in 2024 has been a transformative force in the cryptocurrency and traditional financial markets. With the election of President-elect Donald Trump, speculation is growing about the potential for Dogecoin (DOGE), the meme-inspired cryptocurrency, to follow suit with an exchange-traded fund (ETF) in 2025.

President-elect Trump has pledged to make the U.S. a leader in the cryptocurrency space, and his administration is taking shape with a pro-crypto stance. Notably, the creation of the Department of Government Efficiency (DOGE), spearheaded by Dogecoin enthusiast Elon Musk, reflects this stance.

Nate Geraci, President of ETF Store, believes the new administration may provide opportunities for clearer regulation and approval processes for crypto ETFs. "The hope is that the administration will swiftly clarify which crypto assets are considered securities," Geraci said. "Once that framework is established, the path to approval for more spot crypto ETFs should be more straightforward."

While fund managers are actively pursuing the potential for Solana ETFs, with expectations of approvals by mid-2025, the outlook for a DOGE ETF is less certain. "I am quite confident we will see a Solana ETF trading in the first half of 2025," said a crypto analyst with All-Star Charts. "DOGE is far less likely... Wall Street tends to favor assets that did not originate as memes."

However, despite its memetic origins, Dogecoin has emerged as the sixth-largest cryptocurrency, trading at $0.40 with a market capitalization of $59 billion. Bloomberg's senior ETF analyst Eric Balchunas believes that "what was once a joke could become a serious investment option. Someone will try to create a DOGE ETF because... why not?" However, Dogecoin faces challenges in demonstrating fair market dynamics due to its highly concentrated ownership structure.

With the potential departure of SEC Chair Gary Gensler in early 2025, the crypto industry could face a more favorable regulatory environment. Former CFTC Chair Chris Giancarlo, a potential candidate for the proposed "Crypto Czar" role, may play a pivotal role in shaping the regulatory landscape.

Regardless of whether a DOGE ETF materializes, the Trump administration appears poised to foster an era of crypto-focused financial products.