In a recent analysis, a pseudonymous crypto expert who goes by @itsALLrisky on X (formerly Twitter) presented a compelling case for Dogecoin’s sovereignty, asserting that the popular meme coin may thrive without the need for a Dogecoin ETF.
Why Dogecoin Does Not Need An ETF
According to the crypto expert, Dogecoin’s inherent status as a meme coin would significantly deter it from being completely acknowledged by renowned financial institutions. As a result, the possibility of the cryptocurrency becoming an ETF is unlikely.
Additionally, if Dogecoin maintains its value as a digital currency rather than transforming into an institutional investment, it could potentially flourish through widespread adoption for everyday transactions and purchases on a global scale.
“Those expecting a Dogecoin ETF to follow on Bitcoin’s heels shouldn’t get their hopes up. For Doge to rise, it will have to succeed as a grassroots form of money, adopted by regular humor-loving folk for everyday purchases,” the analyst said.
“Dogecoin’s issuance schedule, low transactional fees, and broad humorous appeal make it ideally suited to be used as a form of cash. More than Bitcoin, Doge is built to move, and that movement is its lifeline.”
DOGE price at $0.082 | Source: DOGEUSD on Tradingview.com
Effects Of Spot Bitcoin ETFs On BTC
“Perhaps the most interesting perspective on ETFs came from crypto OG Arthur Hayes, founder of the BitMex exchange. Hayes warned that if ETFs become too successful, they will destroy Bitcoin as a transactional currency. The reason for this is banks could gobble up millions of Bitcoins, which would then sit inertly in investment vehicles,” the crypto expert stated.
The excitement surrounding the potential approval of Spot Bitcoin ETF could be attributed to the expectations that a Spot Bitcoin ETF could trigger a major rally in the price of Bitcoin. Furthermore, since these investment assets could provide more liquidity for Bitcoin, it may enable a safer form of digital asset investments for investors.
Despite these advantages, the Dogecoin enthusiast has disclosed significant drawbacks that could follow the launch of a Spot Bitcoin ETF.
“A Bitcoin ETF would be a huge step forward for cryptocurrency, signaling acceptance from the most prestigious financial institutions in the world. But progress doesn’t come without drawbacks: the advent of Bitcoin ETFs probably won’t improve Bitcoin’s standing as a form of digital money traded for goods and services. It might even hurt it,” he explained.
Overall, the denial or approval dates of the Spot Bitcoin ETF are fast approaching and scheduled for January 10.
Featured image from Forbes, chart from Tradingview.com