Asset manager Bitwise recently submitted a registration filing for a Dogecoin exchange-traded fund (ETF). This action followed filings from investment firms Rex Shares and Osprey Funds, which also include Dogecoin.
Dogecoin ETF Filing
Bitwise filed for a 'Bitwise Dogecoin ETF' with the Department of State's Division of Corporations in Delaware late Wednesday. This is a preparatory step before filing an official ETF proposal to the SEC.
Current Market State of Dogecoin
Despite the positive sentiment typically associated with ETF filings, the announcement did not result in an expected price increase. Instead, DOGE's value dropped 5%, surprising the market. At the time of writing, Dogecoin was down 5.61% to $0.346 amid a broader market sell-off, which has seen $252 million wiped out in liquidations across various crypto assets.
Market Impact of Events
If the DOGE price rises and closes above the daily SMA 50, bulls might attempt to push it higher to $0.40 or $0.43. Further declines could cause Dogecoin to test the support at $0.31. Investors are now anticipating the next Federal Open Market Committee meeting on Jan. 28-29, when interest rate decreases might be announced.
The filing for a Dogecoin ETF by Bitwise did not lead to an expected price increase for the cryptocurrency. However, the future might bring changes if the fund catches part of the inflows observed in Bitcoin ETFs.
