Grayscale Files for a Dogecoin ETF, DOGE Price Could Skyrocket 5,895% if the Product Captures 50% of Bitcoin ETF Inflows

With Grayscale filing for a Dogecoin ETF, the Dogecoin price could skyrocket tremendously if the product captures only 50% of Bitcoin ETF inflows

Grayscale has filed with the U.S. Securities and Exchange Commission (SEC) to swiftly convert its Grayscale Dogecoin Trust into an exchange-traded fund (ETF). This move comes shortly after the company launched the trust, providing institutional and accredited investors with exposure to Dogecoin without direct ownership.

The trust tracks Dogecoin's market price, allowing investors to gain regulated access to the meme coin. Upon subscribing, the trust will transform into an ETF pending the SEC’s approval.

This filing is part of a broader effort by several asset managers to introduce Dogecoin ETFs. If these products are approved, they could attract more institutional capital into the Dogecoin market, impacting DOGE price positively.

For instance, this trend played out with Bitcoin, where the sustained capital flows into Bitcoin ETFs pushed the BTC price to a new all-time high before a halving event for the first time ever. Specifically, these Bitcoin ETF products have recorded $40.5 billion in capital inflows since they launched in January 2024.

If Dogecoin ETFs manage to attract 50% of these inflows, this could have massive implications for prices. In particular, 50% of the Bitcoin ETF inflows would amount to $20.25 billion. Applying the BoA 118x inflow-to-valuation multiple to this figure would lead to an additional market cap of $2.39 trillion for DOGE.

According to market data, Dogecoin currently has a market cap of $47.6 billion. An addition of $2.39 trillion would bring the total valuation to about $2.86 trillion. Considering Dogecoin's circulating supply of 147.8 billion, a $2.86 trillion market cap would translate to a price of $19.34. This would mark a 5,895% increase from the current price of $0.3226.

However, it is crucial to note that there is no guarantee that Dogecoin ETFs would record such a substantial amount of capital. For instance, despite being in the market since July 2024, Ethereum ETFs have only seen $2.76 billion in inflows.

In related news, Bitwise has also filed an S-1 form with the SEC to establish a Dogecoin ETF. Notably, a crypto market maker called Wintermute had earlier predicted that a major asset manager would launch a meme coin ETF in 2025, with Dogecoin being the likely candidate. This prediction now appears to be unfolding.