Dogecoin ETFs See Surge in Inflows as Whales Accumulate
Spot Dogecoin Exchange-Traded Funds (ETFs), which have struggled to capture investor interest for months, leading to the closure of at least one fund, are now showing signs of life. They have reached a new all-time high in weekly inflows, signaling a potential shift in market sentiment.
Simultaneously, Dogecoin “whales” – large holders of the cryptocurrency – have been actively accumulating tokens, a move that could precede a significant expansion wave for the meme coin.
According to data shared by prominent crypto analyst Ali Martinez, these major market participants have acquired over 1.14 billion Dogecoin tokens in the past 96 hours alone. At current prices, this accumulation is valued at approximately $112 million.
Martinez suggests that these whales are “positioning for a bullish breakout.” This comes despite the meme coin encountering its first significant resistance level at $0.098, following a 15% rally over the past week. At the time of reporting, Dogecoin remains at this critical juncture, where a substantial volume of approximately 28 billion DOGE previously traded, establishing it as a key resistance zone.
Bullish sentiment has been notably dominant recently, particularly since Dogecoin rebounded from lows below $0.07 in mid-August. The cryptocurrency has tested this resistance level on multiple occasions since then without sustained success.
Should Dogecoin successfully break through the $0.098 mark, Martinez noted that the next major supply wall is situated around $0.11, where nearly 5 billion tokens have previously changed hands. A further breach of this level could propel Dogecoin towards $0.20, representing a potential surge of over 100% from its current valuation.
ETF Performance Shows Improvement
The spot DOGE ETFs launched on Wall Street last November as part of a broader introduction of crypto-related funds. However, they initially failed to attract significant attention, with some weeks experiencing no net inflows. This lack of interest ultimately led to the closure of some funds, such as Bitwise, which ceased operations of its DOGE ETF earlier this month.
The past week, however, marked a considerably more positive period. While Dogecoin ETF figures still lag behind most other cryptocurrency ETFs, these financial instruments achieved a new weekly record for net inflows, attracting nearly $2.90 million. The cumulative net inflows have also reached an all-time high of $15.27 million.
Despite this recent improvement, the overall figures remain relatively modest, underscoring that meme coins may not yet hold the same appeal for ETF investors as other digital assets.
