Over the past seven days, the likelihood of a Dogecoin exchange-traded fund (ETF) launching in the United States has continued to increase. Considering the potential effects of such development, market participants have begun to position themselves to capitalize on gains.
According to a report from Santiment, Dogecoin whales are rapidly accumulating DOGE and absorbing the meme coin’s supply ahead of the ETF launch. While this accumulation spree could have ripple effects on Dogecoin’s value, it could also trigger the fear of missing out (FOMO) among other investors.
Dogecoin ETF On the Horizon
Analysts predict that the Dogecoin ETF will likely go live this week. Named the Rex-Osprey DOGE ETF, with the ticker symbol DOJE, the fund is issued by the asset managers REX Shares and Osprey Funds. Santiment revealed that the firms are deploying a strategy called the 40 Act, which often leads to faster approval from regulators.
The ETF will provide investors with a way to invest in DOGE without directly owning the cryptocurrency. If approved, it will be the first Dogecoin ETF in the U.S., marking a huge step for the meme coin sector. As a result, there is a lot of anticipation and excitement around the fund’s approval, both in the crypto and traditional finance communities.
“However, their ‘meme’ status would likely remain intact, as DOGE and essentially every asset in this sector is defined by the intentionally deliberate lack of development activity,” Santiment stated.
How Are Whales Reacting?
About three weeks ago, when news of the possible launch began to circulate, DOGE reacted positively. A certain group of investors gave in to FOMO and bought the local top at the time. However, as soon as the rumors fizzled out, DOGE retraced its steps until the last few days, when the likelihood of approval rose to 93.
While DOGE rallied in mid-August due to the ETF rumors, whales took profits, and their transactions drove prices down. As September began, they started to accumulate again, but this time, near the bottom.
One cohort that has been active this season is the group of whales holding 1 million to 10 million DOGE. They currently hold 10.91 billion DOGE, representing 7.23 of the token’s supply. They have been accumulating since August 25 and are currently at four-year highs.
Meanwhile, since the launch of a Dogecoin ETF could open the doors for other meme coins, traders have begun to bet on newer projects. Santiment highlighted Maxi Doge (MAXI), a satire-themed coin that is expected to fetch investors bigger gains.
