Bitwise has just filed for a Dogecoin ETF, and despite pre-FOMC anxiety, Elon Musk’s DOGE maneuvers are still anticipated to boost DOGE price.
Dogecoin
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just took another step toward mainstream finance, but the crypto market isn’t reacting as expected amid heightened pre-FOMC anxiety.
Bitwise officially filed for a Dogecoin ETF with the SEC in a massive move for the largest meme token, signaling growing institutional interest in meme coins.
In theory, this should have been a huge bullish catalyst for DOGE price, but instead, price is down nearly -16% this week, trading at $0.32—far from its three-year high of $0.475 last November.
To make matters more confusing, Elon Musk’s Department of Government Efficiency (DOGE) initiative has fueled speculation that Dogecoin could influence future blockchain-based government spending.
Yet, crypto isn’t even included in X’s upcoming payments system, and institutional sentiment remains shaky. So what’s really going on?
Market Makers Playing Games as DOGE ETF Approval Inches Closer
Bitwise’s Dogecoin ETF filing follows its previous Delaware trust registration last week, an early legal step typically taken before an official application.
This mirrors the process followed by Bitcoin and Ethereum ETFs, which eventually saw SEC approval and positioned DOGE alongside Solana as a potential upcoming ETF.
With Trump-era regulators at the helm, speculation is rising that DOGE could be next in line for approval—a massive development allowing institutional investors to gain exposure to Dogecoin through traditional markets.
However, instead of sending DOGE prices soaring, the market is seeing a brutal sell-off. DOGE’s open interest in futures has dropped by $1.7 billion, now sitting at $3.8 billion—a sharp decline from its record high of $5.5 billion just days ago.
This suggests that leverage traders are unwinding positions, possibly due to market maker manipulations ahead of a big move.
Historically, large ETF filings coincide with market-wide liquidity events, where market makers engineer dips to shake out retail traders before accumulation.
NEW: Bitwise just filed for a spot Dogecoin ETF.
Odds a $DOGE ETF is approved this year shot up to 56%. pic.twitter.com/Rg8rI3cNw7
— Polymarket (@Polymarket) January 28, 2025
With the SEC having 240 days to approve or reject the DOGE ETF, there’s still time for big players to load up at lower prices before potential approval.
Elon Musk’s DOGE Initiative: Overhyped or a Real Catalyst For DOGE Price in 2025?
At the same time, Elon Musk’s DOGE initiative is creating mixed signals in the market. The Department of Government Efficiency (DOGE)—a cost-cutting government initiative led by Musk—has sparked speculation that Dogecoin could somehow be integrated into federal financial infrastructure.
This idea gained traction after reports surfaced that DOGE officials were considering blockchain technology for government spending transparency.
However, there’s zero confirmation that Dogecoin itself is involved—leading to a wave of speculative trading, followed by sharp corrections as reality set in.
Meanwhile, Trump-linked DeFi project World Liberty Financial (WLF) just made another major crypto buy, acquiring $1.9 million worth of MOVE tokens after previously purchasing $47 million in Wrapped Bitcoin.
While this signals increasing crypto activity within Trump-aligned political and financial circles, it doesn’t directly impact Dogecoin—at least not yet.
The Bigger Picture: What’s Next for Dogecoin in 2025?
Despite the recent dip, the fundamentals for Dogecoin remain stronger than ever amid heightened institutional demand from Bitwise.
A Dogecoin ETF approval would provide mainstream exposure, opening the door for hedge funds and institutional investors to accumulate huge swathes of the coin.
Despite the FOMC spooking crypto markets, crypto remains in its most bullish market structure ever. So, while Dogecoin, like other altcoins, tends to lag Bitcoin in bull markets, an explosive rally could still be ahead.
long targeting the range high
Let’s see pic.twitter.com/lz70gpK69r
— Kastoshi (@Kastoshi1) January 28, 2025
Right now, Dogecoin’s price action looks like a textbook liquidity event—a combination of ETF speculation, Musk-fueled rumors, and broader market FOMC jitters leading to a sharp sell-off before a potential rally.
The DOGE ETF has a legitimate path to approval, and if Musk integrates even the slightest Dogecoin functionality into his ventures, FOMO could return fast. So, for now, DOGE is down—but definitely not out.
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The post Bitwise Files for Dogecoin ETF as Musk’s DOGE Initiative Roils Markets appeared first on 99Bitcoins.
