Dogecoin ETF Inflows: What 30% of BTC Funds Could Mean for DOGE

• The prospect of a Dogecoin ETF emerging in 2025 has gained attention, especially after the successful launches of Bitcoin and Ethereum ETFs in 2024.
• DOGE’s market value could rise significantly if a Dogecoin ETF captures 30% of the $30.8 billion in cumulative net inflows that Bitcoin ETFs are currently seeing.

Exchange Traded Funds (ETFs) have become increasingly popular investment vehicles, granting institutional investors easier access to cryptocurrency. The approval of Bitcoin ETFs in January has already generated excitement and investment inflow into Bitcoin, which historically influenced the broader market.

However, a thought-provoking scenario is emerging: what if Dogecoin, often seen as a playful alternative, a joke, often fueled by internet meme culture, suddenly aimed for a more prestigious role? Speculation is growing around the possibility of a Dogecoin ETF filing in 2025, igniting curiosity among investors. 

Calculating the Price Potential Post-ETF Approval

The ongoing rise in Bitcoin’s price recently surpassing $99,000 has been supported by substantial inflows into Bitcoin ETFs, which have attracted more than $30.8 billion since their approval  by the SEC. This influx has sparked considerable interest in launching ETFs for other cryptocurrencies, including Ethereum (ETH), which launched its own ETF products in July, and filings for XRP and Solana ETFs which are waiting for approval.

Financial experts, including Nate Geraci, CEO of the ETF Store, suggest that asset managers could file for a Dogecoin ETF as a strategic marketing tool to capture investor interest. If a Dogecoin ETF were to secure just 30% of the anticipated Bitcoin ETF inflows of an estimated $9.24 billion, the implications for Dogecoin’s market cap would be substantial. By applying a multiplier based on historical data from Bank of America, which utilizes a multiplier of 29.5x, this influx could potentially increase Dogecoin’s market capitalization significantly.

This multiplication effect suggests that a $9.24 billion inflow could translate into approximately $272.58 billion in additional market cap for Dogecoin, bringing its total estimated market valuation to about $334.68 billion. This influx could result in Dogecoin breaking the crucial $1 barrier, potentially soaring to prices around $2.20 or even higher.

For context, Dogecoin possesses a unique asset: a fervently loyal community ready to support an ETF product enthusiastically. With regulators viewing cryptocurrency as a legitimate asset class, Dogecoin could capitalize on this changing landscape. This perspective is indeed valid, as regulatory attitudes have shifted from outright skepticism to cautious acceptance. 

Take, for instance, President Donald Trump, who once declared Bitcoin “not money, “ stating that it is highly volatile, made some cryptocurrency-friendly policy commitments during his campaigns. As we reported last month, analysts believe that the impending departure of SEC Chairman Gary Gensler in January may create opportunities for more crypto ETF approvals, further enhancing Dogecoin’s prospects.

Dogecoin’s price jumped from $0.3986 to $0.43 within 24 hours, representing a 9% increase. Furthermore, Dogecoin has shown significant growth in recent weeks, with a remarkable gain of over 150% in November alone. Analysts anticipate that the DOGE price could reach $1 by January 2024 if it maintains its upward trend, breaking above $0.50.