- If Grayscale introduces a DOGE-based product, it could attract institutional and retail investors and drive demand for Dogecoin.
- Despite the current decline, DOGE has surged over 15% over the past week and over 22% over the past 30 days.
Grayscale, a prominent crypto asset management company, recently announced plans to expand its product offering with the Dogecoin (DOGE) investment vehicle. The company said in a blog post that Dogecoin, known for its popularity in the meme coin space, is currently being considered as a potential asset for future products. Additionally, the inclusion of Dogecoin could set a new precedent for the crypto ETF niche market.
Grayscale plans to offer Dogecoin investment products
Grayscale already boasts a diverse portfolio, including major cryptocurrencies such as flagship cryptocurrencies Bitcoin (BTC) and Ethereum. We also offer other innovative digital asset investment products such as XRP Filecoin (FIL), Bittensor (TAO), and Decentraland (MANA).
Despite offering a wide range of services in different areas of the cryptocurrency market, Grayscale has not previously ventured into investing in meme coins. The potential of the Dogecoin product could mark a significant expansion of its scope into new areas.
According to a recent blog post, DOGE is one of several digital assets being evaluated by Grayscale. The company categorized these assets into five groups: currencies, smart contract platforms, finance, culture, and utilities. Many of the cryptocurrencies under review fall into the smart contract and utility categories.
However, Dogecoin is different in that it falls into the “Consumption and Culture” category. For context, this classification includes cryptocurrencies that are primarily driven by consumer interest and community engagement, which is a key feature of meme coins. The potential inclusion of Dogecoin in Grayscale's portfolio highlights the growing awareness of meme tokens in mainstream finance.
Previously, Grayscale was the top crypto asset manager by investment value for many years. However, following the success of IBIT Bitcoin ETF and ETHA Ethereum ETF, BlackRock has taken the lead against Grayscale. Nevertheless, according to the CNF report, Grayscale remains a dominant force in the digital asset industry.
Potential impact on DOGE price
Therefore, the introduction of DOGE-based products is likely to attract significant attention from traditional investors who were previously skeptical of such investments. Additionally, the Dogecoin ETF could pave the way for large capital inflows from both institutional and retail investors.
Eventually, demand for DOGE will increase, potentially pushing its price higher. It could also improve the standing of other meme cryptocurrencies such as Shiba Inu (SHIB) and Floki (FLOKI). It could also help legitimize the overall meme coin market with other meme token ETF opportunities.
According to a report from CNF, the price of Dogecoin is currently declining despite all the hype surrounding the potential for an ETF and Elon Musk's endorsement. At the time of writing, DOGE price is $0.1221, reflecting a decline of 3.13% in the past 24 hours. However, over the past 7 days Dogecoin is up over 15%, which is a huge feat.
Over the past 30 days, the price of DOGE has increased by 22%. Moreover, it broke through the key resistance level at $0.12. This breakthrough could move Dogecoin towards its $0.129 price target and set it up for further growth, CNF reported.
