Over the past week, the likelihood of a Dogecoin ETF (Exchange-Traded Fund) being approved in the United States has surged, prompting large investors to aggressively accumulate DOGE in preparation for a potential rally.
Dogecoin ETF on the Horizon
According to Santiment, whales are absorbing significant portions of Dogecoin’s circulating supply ahead of the expected ETF launch. The fund, called the Rex-Osprey DOGE ETF and trading under the ticker DOJE, is issued by REX Shares and Osprey Funds. Analysts predict approval could come as soon as this week.
The issuers are pursuing a strategy under the 40 Act, which typically results in faster regulatory clearance. If approved, the ETF would mark the first-ever Dogecoin ETF in the U.S., giving investors direct exposure to DOGE through traditional markets without needing to hold the cryptocurrency themselves.
This move could significantly boost the legitimacy of meme coins within institutional finance, while still preserving their unique “meme status.” Santiment noted that DOGE, like most meme assets, retains its charm through minimal development activity, which continues to define the sector.
Whale Activity Signals Confidence
When rumors of the ETF first circulated in mid-August, Dogecoin’s price surged before retracing once excitement cooled. Whales initially took profits, but since late August, large holders have re-entered the market, this time buying at lower levels.
Particularly active are wallets holding between 1 million and 10 million DOGE, which now control 10.91 billion DOGE 7.23% of the total supply. This group’s holdings are at a four-year high, reflecting renewed conviction in Dogecoin’s long-term outlook.
The accumulation has fueled speculation that a confirmed ETF approval could trigger widespread FOMO (fear of missing out) among retail traders, potentially setting off a sharp rally.
Meme Coin Ripple Effects
The impact of a Dogecoin ETF could extend beyond DOGE itself. Traders have already begun speculating on secondary meme coins, hoping they might ride the wave of legitimacy that an ETF would bring to the sector. Santiment highlighted Maxi Doge (MAXI), a satire-themed project, as one of the smaller meme coins attracting speculative interest.
If successful, the DOJE fund could pave the way for other meme coins to gain institutional traction, marking a historic milestone for the sector once dismissed as pure speculation.
