The cryptocurrency sector in 2024 saw the approval and success of Bitcoin and Ethereum-based ETFs. With the new US administration under Donald Trump, expectations grow for a Dogecoin ETF launch in 2025.
Introduction of Crypto ETFs
The approval of Bitcoin and Ethereum-based ETFs marked a turning point for the cryptocurrency market. These instruments provide investors with access to cryptocurrencies through traditional stock platforms, increasing liquidity and accessibility of these assets.
Policies of the New Administration
With Donald Trump's administration, significant support for cryptocurrencies is anticipated. Trump plans to make America the 'Bitcoin capital of the world,' which includes the creation of the Department of Government Efficiency (DOGE) led by Elon Musk. Regulatory clarity will be essential for advancing crypto ETFs. Nate Geraci of ETF Store emphasized the importance of determining which crypto assets are securities and which are not. 'Once this framework is in place, the approval path for additional spot crypto ETFs will become much clearer,' he added.
Forecasts and Expectations
Despite the focus on Dogecoin, analysts believe a Solana ETF might launch sooner. With four applications for Solana filed on Cboe BZX, analysts predict approval by mid-2025. Crypto analyst Louis Sykes is confident of seeing a Solana ETF in the first half of 2025. 'DOGE is much less likely...let's just say Wall Street prefers assets that weren't born as a memecoin,' he stated. Eric Balchunas of Bloomberg notes that what seems like today's humor might become tomorrow's ETF. Alexander Blume of Two Prime Digital Assets agrees that Dogecoin ETF applications are inevitable, but warns about challenges posed by high concentration of Dogecoin holders.
As the market observes the developments of crypto ETFs, the possibility of a Dogecoin ETF remains a topic of discussion. Under a pro-crypto administration, the US may expedite regulatory processes, paving the way for more such financial instruments.
