DOGEcoin Experiences Surge in Value Following Exceptional Early Trading Performance of First US DOGE-focused ETF
Dogecoin (DOGE) is experiencing a surge in popularity, with several new Exchange-Traded Funds (ETFs) entering the market. One of the key players in this development is CleanCore Solutions, a publicly traded firm that recently added 100 million DOGE to its balance sheet, bringing its total to 600 million DOGE or around $170 million worth.
CleanCore's accumulation of Dogecoin may be contributing to the meme coin's acceleration in the last week. The company's long-term goal is to accumulate 5% of the entire Dogecoin circulating supply, which is about 7.5 billion DOGE or around $2.1 billion worth.
The Dogecoin Foundation's commercial arm, the House of Doge, is collaborating with CleanCore Solutions to manage the first "official" Dogecoin treasury. This collaboration is a significant step forward for the cryptocurrency, as it marks the first time a major treasury has been dedicated to Dogecoin.
Another milestone was reached with the launch of the Rex-Osprey ETF, the first Dogecoin ETF to go live for trading. The trading volume of the Rex-Osprey ETF surpassed the expectations of Eric Balchunas, a senior ETF analyst at Bloomberg, in the first hour of trading. More Dogecoin ETFs are expected to hit the market in the next month.
Grayscale and Bitwise are expected to have decisions for multiple DOGE ETFs by October 17, and these are "near locks" for approval according to analysts. These upcoming ETFs are registered under the Securities Act of 1933, which means they are backed by reserves of the underlying assets.
The DOJE ETF, the first U.S. ETF centered on Dogecoin, went live for trading on Thursday. Unlike other popular crypto ETFs, the DOJE ETF is registered under the Investment Company Act of 1940 and offers access to spot Dogecoin via a Cayman Islands registered subsidiary. The DOJE ETF generated nearly $6 million in trading volume in the first hour, surpassing Balchunas' initial expectation of $2.5 million.
Dogecoin has also seen a significant increase in its value in the last 24 hours, with a 8% rise. As of now, Dogecoin is priced at $0.286, rising nearly 34% over the last 30 days. The overall positive sentiment around Dogecoin is likely to continue as more ETFs enter the market and provide institutional investors with an easier way to invest in the meme coin.
Eric Balchunas, the senior ETF analyst at Bloomberg, has been vocal about the solid trading volume of DOGE and DOJE ETFs. He noted that the trading volume of DOJE was shockingly solid, as most ETFs trade under $1 million on their first day. He also praised the Rex-Osprey ETF, stating that its trading volume surpassed his expectations in the first hour of trading.
In conclusion, the launch of new Dogecoin ETFs and CleanCore Solutions' accumulation of Dogecoin are contributing to the meme coin's surge in popularity. With more ETFs expected to hit the market in the next month, it will be interesting to see how Dogecoin's value continues to evolve.
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