Why Is Dogecoin Rising Despite the Delay of Its ETF?

The iconic memecoin Dogecoin continues its rise, driven by market enthusiasm. Despite another delay in the launch of its first American ETF, institutional investors remain alert and seem little affected by this announcement. 

Dogecoin Advances Despite the SEC

Friday, September 12, was supposed to mark a historic milestone with the listing of the Rex-Osprey DOGE ETF. 

Eric Balchunas, senior analyst at Bloomberg and a key reference for crypto ETFs, confirmed on Thursday the delay of this launch, probably until next Thursday. No official explanation accompanies this decision, fueling speculation about the SEC’s real motives.

Paradoxically, this bad news coincided with a remarkable performance of Dogecoin. The memecoin jumped nearly 4%, reaching $0.2603 according to CoinMarketCap. 

This bullish reaction reflects a new market maturity, which now seems to incorporate these regulatory uncertainties as normal steps in the approval process.

This delay is part of a broader SEC strategy to buy time. The regulatory authority faces an unprecedented backlog with more than 90 crypto ETF applications pending. 

Recent delays of the Bitwise Dogecoin and Grayscale Hedera ETFs, postponed to November 12, illustrate this methodical approach aiming to handle applications in coordinated waves.

Balchunas nonetheless tempers expectations regarding the potential impact of this ETF. “The further you move away from BTC, the fewer assets there will be.”, he explains to Cointelegraph. 

Unlike traditional institutional investors who could only access bitcoin with difficulty, DOGE enthusiasts already have direct access via exchanges.

Increasingly Visible Institutional Signals

Beyond the speculation surrounding its image, Dogecoin is starting to attract traditional companies. 

CleanCore Solutions, an industrial systems manufacturer, recently purchased $130 million worth of DOGE, thus reaching half of its goal set at one billion tokens. A first for a company in this sector, illustrating the gradual transformation of the memecoin into a treasury asset.

At the same time, Thumzup, a media company linked to the Trump family, announced the installation of 3,500 Dogecoin mining platforms. A strategy that resembles an implicit recognition of the token’s legitimacy in the crypto ecosystem.

These initiatives reinforce the image of an asset that, despite its parodic beginnings, now attracts institutional capital and strategic investments. Dogecoin seems to have crossed a threshold: from a mere “joke coin”, it is gradually establishing itself as an asset that some economic actors no longer hesitate to accumulate.

And if the SEC approves several altcoin ETFs by the end of the year – a hypothesis judged 90% probable by Bloomberg for DOGE, XRP and Cardano – the effect could be considerable. Such recognition would amplify a movement already underway in the markets.

In summary, Dogecoin continues to defy expectations. Despite the new delay of its American ETF, its price is rising, supported by now tangible institutional interest. More than a simple meme, it confirms its unique status: that of a joke turned, over the years, into a serious player in the crypto market.