- If Grayscale introduces a DOGE-based product, it could attract institutional and retail investors, driving demand for Dogecoin.
- Despite the current pullback, DOGE has surged over 15% in the past week and 22% in the last 30 days.
Grayscale, a prominent crypto asset manager, has recently announced its plans to broaden its product offerings with Dogecoin (DOGE) investment vehicles. In a blog post, the company mentioned that Dogecoin, known for its popularity in the meme coin space, is currently under consideration as a possible asset for future products. Moreover, Dogecoin’s inclusion could potentially set a new precedent for the crypto ETF niche.
Grayscale Plans To Offer Dogecoin Investment Products
Grayscale already boasts a diverse portfolio, which includes leading cryptocurrencies like Bitcoin (BTC), the flagship crypto, and Ethereum. It also offers investment products on other innovative digital assets such as XRP Filecoin (FIL), Bittensor (TAO), and Decentraland (MANA).
Despite its wide range of offerings in various sectors of the crypto market, Grayscale has not yet ventured into meme coin investments until now. The possibility of a Dogecoin product could mark a significant expansion of its reach into new areas.
According to a recent blog post, DOGE is one of several digital assets being evaluated by Grayscale. The company has categorized these assets into five groups: currencies, smart contract platforms, financials, culture, and utilities. Many of the cryptocurrencies under review fall into the smart contract and utility categories.
However, Dogecoin is distinct in being placed in the “consumption and culture” category. For context, this classification encompasses cryptocurrencies 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 recognition of meme tokens in mainstream finance.
Earlier, Grayscale was the top crypto asset manager by investments for many years. However, BlackRock took a lead against Grayscale following the success of the IBIT Bitcoin ETF and ETHA Ethereum ETF. Despite this, Grayscale remains a dominant force in the digital asset industry, per the CNF report.
Potential Impact on DOGE Price
Thus, the introduction of a DOGE-based product could attract significant attention from traditional investors who earlier were skeptical about such investments. Moreover, a Dogecoin ETF could pave the way for large capital inflows from institutional and retail investors alike.
It could eventually drive demand for DOGE, pushing its price higher. It may also elevate the status of other meme cryptocurrencies like Shiba Inu (SHIB) and Floki (FLOKI). It could also serve to legitimize the entire meme coin market with ETF opportunities for other meme tokens.
Currently, the Dogecoin price is witnessing a pullback despite the potential of an ETF and hype around Elon Musk’s endorsement, per the CNF report. At the time of writing, the DOGE price was at $0.1221, reflecting a 3.13% decline over the past 24 hours. However, in the last seven days, Dogecoin has gained over 15%, which is a major feat.
Over the last 30 days, DOGE price has surged by 22%. Furthermore, it broke out from the crucial resistance level at $0.12. This breakthrough could see Dogecoin pushing towards a price target of $0.129, setting the stage for further growth, reported CNF.
