Why Dogecoin Is Up: Grayscale New DOGE Belief Boosts Worth

Once dismissed as a joke, Dogecoin (DOGE) is now
making its way into institutional finance. Grayscale, a major US-based asset
management firm, has launched a Dogecoin Trust, arguing that the token’s low
transaction fees and fast processing times make it an effective tool for
financial inclusion.

This could boost the evolving perception of DOGE, which
has traditionally been seen as a speculative asset rather than a serious
investment vehicle.

This latest development has boosted the memecoin, according to data from CoinMarketCap. Although the price is down 7% in the past week, it has seen a 3% increase in the daily chart, trading at $0.336 at
the time of publication.

We are proud to announce a new single-asset crypto investment fund, Grayscale Dogecoin Trust $DOGE.much wow, big exciteAvailable to eligible accredited investors.Read the press release: https://t.co/tV5TC8uoHV pic.twitter.com/cqqJxVRkIC

— Grayscale (@Grayscale) January 31, 2025

Grayscale’s Bet on Dogecoin

Grayscale announced the launch of its Dogecoin Trust
on Friday, further expanding its suite of crypto investment products. The
introduction of this trust comes amid a broader shift in the crypto investment
landscape.

The Connecticut-based firm is among the companies also
pushing to list spot XRP exchange-traded fund on US stock exchanges. Recently,
the company reportedly filed an application with the SEC to convert its XRP
Trust into an ETF.

Since Donald Trump’s recent election victory, several
fund managers have filed for Dogecoin ETFs, a move that would have been
unlikely under the previous administration. With a market capitalization nearing $50 billion, DOGE
remains the largest memecoin, and institutional products like trusts and ETFs
could drive further capital inflows.

Dogecoin’s price has been highly volatile in recent
months. In early January, DOGE traded around $0.31 before surging above $0.40
by mid-month, peaking just before Trump’s inauguration. However, following his
swearing-in, the token dropped back to $0.30 before stabilizing at around
$0.32.

Dogecoin and the ETF Race

One of the biggest catalysts for DOGE’s price could be
the approval of a spot Dogecoin ETF. Bitwise recently filed an application with
the US Securities and Exchange Commission for a DOGE-based
exchange-traded fund. The SEC previously approved Bitcoin ETFs, which initially
triggered short-term corrections before leading to long-term price
appreciation.

Market participants are now watching how the SEC,
under new leadership, will approach DOGE ETFs. According to the prediction platform
Polymarket, there is a 56% chance that such an ETF will receive approval in
2025. If it does, the question remains whether the news will
spark a rally or trigger a sell-off, similar to what happened with Bitcoin
ETFs.

This article was written by Jared Kirui at www.financemagnates.com.



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