Dogecoin Surges Over 34% in a Week amid ETF Delay by the SEC

Dogecoin (CRYPTO: DOGE) is doing well lately, gaining 3.56% in the last 24 hours. Currently trading for $0.2329, the meme coin provided returns of 34.16% last week, and is up 41.76% in the last month. 

The recent uptick in Dogecoin price is due to a recent SEC announcement for its ETF.

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On Tuesday, the Securities and Exchange Commission (SEC) put its 21Shares Dogecoin ETF proposal on hold. While a delay is typically seen as negative, the context behind this decision might be positive.

The Securities and Exchange Commission has requested public feedback on the Dogecoin ETF, 21Shares. It signals that the agency is seriously contemplating the ETF. Since the current Donald Trump administration took office, the SEC has been significantly more lenient on crypto. It has dismissed many crypto lawsuits and shown openness to new ETF structures, such as in-kind redemptions.

The decision is important for Dogecoin because ETF approval, even pending, tends to legitimize a token in the eyes of institutional investors. If the 21Shares Dogecoin ETF is approved within the coming months, it would be the first time that a meme coin is given such formal financial treatment. This may lead to even more capital flows into the asset.

On broader market performance, Dogecoin was one of the week’s top performers. Additionally, crypto markets reacted positively to April’s consumer price index, which was surprisingly lower than expected. A lower price index may lead to a rate cut by the Federal Reserve later this year. If this happens as the markets hope, it will be beneficial for risk-on assets such as cryptocurrency.

Adding to the optimism, Coindesk reported that the Fear & Greed Index, a popular sentiment indicator, has remained in “greed” territory for four consecutive days. It implies a strong demand from investors. While some traders have warned against short-term profit-taking due to the surging dollar and ongoing trade tensions, Dogecoin has continued to benefit from the momentum wave.

Dogecoin is demonstrating that it possesses long-term staying power within the world of crypto. Its steady trading volumes, community backing, and recent price action are generating strong interest. 

The coin has now achieved a market cap of over $35.09 billion. If Dogecoin ultimately gets the ETF approval and the market conditions remain favorable, it won't be wrong to say that Dogecoin could rise from the meme coin stigma, and find a stable place in institutional portfolios.

For now, Dogecoin is doing really well be it on speculative terms, sentiment, or signs of institutional adoption. Whether or not the rally will continue will depend on regulatory decisions and overall market forces, but Dogecoin is certainly back in the game.

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