The Dogecoin price could soar to new highs if a Dogecoin ETF market secures approval and attracts just 30% of the inflows from Bitcoin ETF products.
Dogecoin (DOGE) is one of the best performers of the ongoing bull market, currently trading at a high last seen in June 2021. Despite the market-wide correction, which triggered a 2.8% drop in the Dogecoin price in 24 hours, the meme coin boasts a 159% increase in November.
DOGE has achieved this immense growth rate on the back of mere market speculation and discussions around the Department of Government Efficiency (DOGE) spearheaded by Tesla CEO Elon Musk in the incoming Donald Trump administration.
DOGE Rallies on Market Speculation
Interestingly, the impact from external fundamental market catalysts such as ETFs has not materialized yet, with these factors capable of triggering a more substantial price gain. Notably, Bitcoin’s Q1 price upsurge was partly fueled by inflows into Bitcoin ETFs, which launched in January.
In addition, the ongoing uptrend, which saw BTC cross $99,000, has also come on the back of capital flows into the ETF products. With Bitcoin ETFs currently boasting inflows worth $30.8 billion since January, discussions around ETFs for other crypto assets have emerged.
Ethereum (ETH) was the next to attract ETF products, which launched in July. Moreover, some asset managers have filed for XRP ETFs and Solana ETFs. However, the SEC has not yet approved these filings.
Dogecoin has been in the background, but the possibility of an ETF for the meme coin is not out of the question. Notably, Nate Geraci, CEO of the ETF Store, recently argued that some asset managers could file Dogecoin ETFs as a marketing strategy.
Dogecoin Price if Its ETFs Capture 30% of Bitcoin ETF Inflows
Meanwhile, Bloomberg’s ETF expert Eric Balchunas, noted that Dec. 31 could be the perfect time to file for a Dogecoin ETF. Should asset managers show interest in Dogecoin for an ETF product, the market could witness an influx of capital.
Such an influx is capable of triggering an impressive increase in the Dogecoin price. Notably, with Bitcoin ETF products currently witnessing $30.8 billion in cumulative net inflows, if a Dogecoin ETF market captures only 30% of this figure, DOGE’s market value could skyrocket.
For context, 30% of the Bitcoin ETF inflows amount to $9.24 billion in capital injection. If one leveraged a quarter of the Bank of America (BoA) multiplier of 118x, this would lead to a market cap multiplier of 29.5x for every dollar that flows into the Dogecoin ETF.
At this 29.5x rate, the $9.24 billion would translate to $272.58 billion in additional market cap for Dogecoin. This would bring DOGE’s market valuation to $334.68 billion, slightly lower than Ethereum’s current market cap of $406.58 billion.
With the $334.68 billion market cap, the Dogecoin price could breach the $1 mark, essentially skyrocketing to $2.2 per token. Analysts such as Ali Martinez believe this target is feasible for Dogecoin price, with Martinez recently predicting a possible rally to $2.4.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
