In 2024, the success of Bitcoin and Ethereum ETFs has had a profound impact on both the cryptocurrency and traditional financial sectors. Looking ahead to 2025, with President-elect Donald Trump’s crypto-friendly stance, there is mounting speculation as to whether Dogecoin (DOGE), the cryptocurrency that emerged from a meme, could also have its own exchange-traded fund.
Trump, who has pledged to make the U.S. the “bitcoin capital of the world,” is assembling an administration that seems inclined towards crypto. Notably, he established the meme-inspired Department of Government Efficiency (DOGE), which is headed by Dogecoin enthusiast Elon Musk.
Nate Geraci, the President of ETF Store, perceives potential under the new administration. “The expectation is that the new administration will promptly determine which crypto assets are securities and which are not,” Geraci stated. “Once that framework is established, the approval process for additional spot crypto ETFs should become considerably more straightforward.”
While fund managers are vying to take advantage of the current trend – Cboe BZX recently applied for four Solana ETFs, with approval anticipated by mid-2025 – the prospects for a DOGE ETF are less definite.
A crypto analyst from All-Star Charts said, “I’m highly confident that a Solana ETF will be trading in the first half of 2025. However, DOGE is much less likely… suffice it to say that Wall Street favors assets that did not originate as a meme.”
Despite its humble beginnings, Dogecoin is now the sixth-largest cryptocurrency, trading at $0.40 and possessing a market capitalization of $59 billion.
Bloomberg’s senior ETF analyst Eric Balchunas contends, “Today’s joke could be tomorrow’s ETF. Someone will attempt it because… well, why not?” Nevertheless, Dogecoin confronts obstacles in demonstrating fair market conditions due to highly concentrated ownership.
With Gary Gensler set to step down as SEC Chair in early 2025, the crypto industry might encounter a more conducive regulatory climate. Former CFTC Chair Chris Giancarlo, a leading candidate for the newly proposed “Crypto Czar” position, could play a crucial role in molding this environment.
Regardless of whether Dogecoin ETFs come to fruition, the era of crypto-centered financial products appears to be in its nascent stage under Trump’s administration.
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