While interest in Dogecoin in cryptocurrency-focused spot exchange traded funds (ETFs) in the USA has gained momentum again in recent days, there have been significant outflows from Bitcoin and Ethereum. In the last 24 hours, $648.64 million was withdrawn from Bitcoin and $86.31 million was withdrawn from Ethereum. In this environment, institutional investors are directing their portfolios to alternative cryptocurrencies such as XRP, Solana and Dogecoin.
Historic rise in Dogecoin ETFs
According to the latest figures shared by data analysis platform SoSoValue, net daily inflows into Dogecoin ETFs reached $860,960, the highest level seen since April 10. This figure means an increase of 215 percent compared to the previous day. The total managed asset size, including Grayscale’s GDOG and 21Shares’ TDOG funds, has now reached $14.69 million.
Price expectation and technical analysis combined
Two main reasons stand out behind the rapid rise in Dogecoin ETFs. On the one hand, expectations that payments can be made with Dogecoin on the social media platform X, owned by Elon Musk, keep investor excitement alive. On March 10, Musk stated that the new payment system, called X Money, would be available for early access in April.
Although the expected announcement still hasn’t happened as of May 19, the platform has taken an important step. X has updated its Cashtag feature, offering crypto users the ability to view live price charts and market data directly in the timeline. While this feature increased optimism in the Dogecoin community, especially the one named after Elon Musk, it also supported market expectations.
According to analysts, demand for ETFs, combined with long-standing payment integration hopes for Dogecoin and technical pullbacks, has led to a steady inflow of money into the funds.
Technical indicators encourage investors
According to market techniques, Dogecoin recently retested the $ 0.10 level with a 13 percent correction after peaking on May 11 after a 30 percent rise that started on April 20. According to the weekly charts, if this level coincides with the middle Bollinger Band line, it is considered a strong buy signal in crypto technical analysis. Technically, it is evaluated that the risk of decline in positions taken from this type of support is relatively low and the upside potential is high.
Despite Elon Musk delaying the payment project, investors in the USA are turning to collecting Dogecoin at low levels through regulated ETFs. For them, buying Dogecoin at around $0.10 before the launch of the X Money system stands out as an attractive strategy.
