Dogecoin’s price surged by 8% on March 15, 2024, following a significant update regarding the 21Shares Dogecoin Exchange-Traded Fund (ETF) application. This movement marks one of Dogecoin’s strongest performances in recent weeks, driven by a notable influx of institutional investment, which has contributed to a trading volume of $1.37 billion. The cryptocurrency has broken through key resistance levels, with momentum indicators suggesting further potential for growth.
As excitement builds around the upcoming developments in the Dogecoin ETF space, the broader meme-coin sector also appears to be gaining traction. The announcement by 21Shares regarding its updated filing with the U.S. Securities and Exchange Commission (SEC) has bolstered optimism among investors regarding the launch of the ETF, which will trade under the ticker TDOG on Nasdaq.
21Shares Updates ETF Filing Details
The revised filing from 21Shares includes crucial information about the proposed ETF. It will feature a 0.50% management fee, calculated daily and payable weekly in Dogecoin. While there are currently no announced fee waivers, expectations suggest that such waivers may be introduced closer to the ETF’s launch date.
Furthermore, 21Shares has confirmed its partnerships with several service providers, including:
– The Bank of New York Mellon for administration and custody services
– Anchorage Digital Bank and BitGo as custodians
– Wilmington Trust NA serving as trustee
– Foreside Global Services for marketing
– Cohen & Company handling accounting
Prior filings indicated that 21Shares US LLC intends to seed the ETF with $1.5 million to purchase Dogecoin before trading begins, providing essential initial backing for the fund.
Market Response and Future Outlook
The impact of the updated filing has been immediate, with Dogecoin’s price climbing over 11% within 24 hours, pushing it above $0.15. Trading volume increased by 32%, reflecting strong interest from both retail and institutional investors. Although Dogecoin remains below its 50-day and 200-day moving averages, the recent breakout above its trendline, coupled with a rising Relative Strength Index (RSI) around 45, indicates potential for further price appreciation.
The derivatives market has also experienced heightened activity, with Dogecoin futures open interest rising by more than 8% to reach $1.5 billion in the past day. Major exchanges such as Binance, OKX, and Bybit have reported increasing open interest, suggesting traders are positioning for additional upward movement as the TDOG ETF nears approval.
In conclusion, Dogecoin’s recent price surge reflects a growing confidence in the cryptocurrency’s market position, bolstered by institutional interest and developments surrounding the anticipated ETF. As the situation evolves, market participants will be closely monitoring further updates from 21Shares and the SEC.
