The cryptocurrency market witnessed a significant regulatory milestone this week with the launch of the 21Shares Dogecoin ETF (TDOG) on Nasdaq, following approval from the U.S. Securities and Exchange Commission (SEC). This development makes Dogecoin the first and only meme coin with a standalone SEC-approved spot ETF, granting it institutional access alongside major assets like Bitcoin and Ethereum.
Concurrently, on-chain data reveals notable whale activity. According to analyst Ali, large Dogecoin holders have redistributed approximately 410 million DOGE over the past week. While this could signal building sell pressure, it may also indicate a repositioning of funds into new wallets for long-term holding. Whales currently hold over 17.34 billion DOGE, maintaining a significant position in the market.
The price action reflects this mixed sentiment. Dogecoin's price was trading just above a key trendline at the time of writing, attempting to hold above the $0.1243 level. Analysts note a bearish pennant pattern that could threaten a drop to $0.108, while technical indicators like the MACD remain bearish, though with fading momentum. However, the Cumulative Volume Difference (CVD) showed a negative reading of $1.27 million, suggesting bears have reduced their sell orders.
The ETF approval is seen as a pivotal counterbalance to whale-driven volatility. By classifying DOGE as a regulated asset class, the ETF is expected to attract traditional investors and increase trading activity, especially with the prospect of more DOGE ETFs launching on Wall Street. Further bolstering adoption, Shopify has integrated Dogecoin payments via Coinbase, providing additional utility.
This regulatory clarity has reshaped the meme coin landscape, widening the gap between Dogecoin and its primary rival, Shiba Inu (SHIB). While SHIB is classified as a non-security and trades via a regulated futures product, no U.S. asset manager has filed for a standalone spot ETF, with critics citing concerns over anonymous leadership and slow development cycles. Dogecoin's market capitalization of roughly $21 billion now far outpaces its competitors, solidifying its lead in the institutional race.
