Dogecoin registered a rise of over 3% this Monday, driven by the optimism generated ahead of the debut of its exchange-traded fund. Grayscale confirmed via X that the Dogecoin ETF, under the ticker GDOG, will officially begin trading on NYSE Arca tomorrow. This rally occurs at a time when the meme cryptocurrency manages to decouple from negative political news to focus on its financial adoption.
According to market data, the price of DOGE hovered around $0.145 on Monday, outperforming the CoinDesk 20 index performance. On the other hand, the digital asset managed to exceed average gains of the general market, which barely rose 0.6% on the same trading day.
Likewise, it is expected that Bitwise’s rival product could go live soon under the 20-day regulatory window. Despite canine dominance in headlines, cat-themed tokens actually led the sector gains with a market capitalization increase of 4.2%.
This bullish movement is notable because it ignores the recent collapse of the government efficiency initiative led by Elon Musk. The White House confirmed that the department known as D.O.G.E has dissolved eight months ahead of schedule following internal disputes.
Therefore, the market has decided to ignore the political failure of Musk to focus purely on the asset’s market structure. Historically, headlines about Musk moved the price, but this time the institutional narrative has prevailed over the tech mogul’s social media influence.
Will the new exchange-traded fund sustain the rally against technical weakness?
The general market scenario remains complex, as major assets like Bitcoin and Ethereum show significant weekly losses. On the other hand, Bitcoin and Ethereum have fallen between 9% and 10% respectively in the last week, highlighting DOGE’s current relative strength.
However, selling by large whales and weak technical indicators suggest that price action remains fragile in the short term. Thus, enthusiasm for the Dogecoin ETF acts as a rare bullish catalyst in a macroeconomic environment that continues to appear mostly bearish.
The arrival of regulated investment vehicles offers a new avenue of legitimacy for meme assets in traditional markets. However, the sustainability of this rally will depend on volume actually captured by these funds in their first days of trading on the exchange. The closure of Musk’s department marks the end of a political speculative era, giving way to a more institutional and regulated phase. Finally, investors will watch if selling pressure from whales subsides in the face of new demand generated by these financial products.
