Could Dogecoin (DOGE) Become an ETF? Examining Its Potential in 2025

Cryptocurrency exchange-traded funds (ETFs) have gained massive attention following the approval of Bitcoin ETFs in the US. 

With institutional investors now having regulated access to Bitcoin, speculation has shifted toward which altcoins might be next in line. While Ethereum is widely expected to follow, discussions have taken an unexpected turn towards Dogecoin (DOGE).

Why Dogecoin (DOGE) Is a Strong ETF Contender

Initially created as a joke, Dogecoin has grown into one of the most actively traded cryptocurrencies in the world. Its popularity is undeniable, but what has surprised many is its potential to be considered for an ETF. 

Analysts believe that DOGE’s classification as a commodity, similar to Bitcoin and Litecoin, gives it a strong case for approval. Unlike other altcoins that have faced legal scrutiny, DOGE has largely avoided regulatory controversies.

However, it’s not the only cryptocurrency aiming for an ETF. Despite its regulatory challenges, XRP remains a key player in the discussion. While Dogecoin is gaining momentum as a strong ETF candidate, XRP’s path is less clear due to its ongoing legal battles with the SEC.

So, how likely is it that DOGE will become an ETF before other major altcoins like XRP? And what factors will determine which cryptocurrencies are cut?

A major factor in DOGE’s favour is its decentralised nature. Unlike many newer cryptocurrencies, Dogecoin was not launched through an ICO, and it does not have a central entity managing its supply or development. 

This puts it in a category similar to Bitcoin and Litecoin, both of which have been recognised by US regulators as commodities rather than securities.

^{Source: Bloomberg}

Another key reason for DOGE’s increasing ETF prospects is institutional interest. Companies like Grayscale already offer Dogecoin investment products, and market speculation is growing that ETF issuers will push for DOGE-based financial products soon. 

Institutional demand has proven to be a significant driver of ETF approvals, and the fact that major investment firms are already exploring Dogecoin is a strong signal.

DOGE’s market performance and liquidity also play a major role. It consistently ranks among the top cryptocurrencies by trading volume, making it one of the few altcoins that could sustain an ETF without liquidity issues. 

Unlike smaller altcoins that lack the trading volume needed for ETF operations, DOGE has widespread adoption, which could make it a practical choice for ETF issuers.

Another advantage is regulatory clarity. The SEC has historically been hesitant to approve ETFs for cryptocurrencies classified as securities. Since Dogecoin has never been labelled a security, it faces fewer regulatory hurdles than assets like XRP and Solana.

Read more: Why Is DOGE Down? Triggers of DOGE Price Fluctuations

XRP’s Position in the ETF Race

While DOGE is gaining traction in ETF discussions, XRP’s case is more complicated. The biggest hurdle for an XRP ETF is regulatory uncertainty. XRP was at the centre of a high-profile SEC lawsuit that argued it was sold as an unregistered security. 

Although Ripple has resisted these claims, the legal battle has made obtaining ETF approval for XRP much more difficult.

XRP’s strongest advantage is its institutional use case. Unlike Dogecoin, which is often seen as a speculative asset, XRP has positioned itself as a solution for cross-border payments. 

Many banks and financial institutions have integrated XRP into their systems, making it one of the most widely used digital assets in traditional finance.

If XRP were to gain regulatory clarity, its ETF approval chances could rise significantly. Some analysts believe that the SEC’s stance on cryptocurrencies could evolve, especially as more ETFs enter the market. 

However, XRP's ETF approval remains uncertain until it is fully classified as a commodity or given clear legal status.

Another challenge is that the SEC has been slow to acknowledge XRP-based financial products. 

Unlike Litecoin and Dogecoin, which have largely avoided legal troubles, XRP’s association with Ripple’s ongoing legal battles has made ETF issuers hesitant.

That said, XRP still has strong market demand, and if regulators eventually provide a clear path for its approval, it could become a major contender for an ETF.

What’s Next for Crypto ETFs in 2025?

The cryptocurrency ETF market is developing, and 2025 is expected to be a crucial year for altcoin ETFs. With Bitcoin ETFs now fully operational, the focus has shifted to which altcoins will be next.

Ethereum is widely expected to be approved first, but the SEC’s willingness to accept Litecoin ETF applications has opened the door for other proof-of-work cryptocurrencies, including DOGE. If Litecoin successfully secures ETF status, Dogecoin’s approval could follow.

Institutional demand will also play a key role. Companies like BlackRock, Fidelity, and Grayscale are exploring new ETF offerings, and the growing interest in altcoins could push regulators to expand their approval criteria. 

If investor appetite for diversified crypto ETFs continues to rise, it will become increasingly difficult for the SEC to ignore requests for DOGE and XRP ETFs.

However, the biggest unknown remains how the SEC will classify these assets. If the agency provides clearer guidelines on what differentiates commodities from securities, it could significantly impact which cryptocurrencies receive ETFs first. 

For now, Dogecoin appears to have a stronger regulatory position, while XRP is still facing legal uncertainties.

Conclusion

Dogecoin is one of the strongest candidates for ETF approval outside of Bitcoin and Ethereum. Its decentralised nature, proof-of-work model, and lack of legal controversy make it appealing to regulators and institutional investors. 

Analysts have placed DOGE above Solana and XRP in the ETF approval race, giving it a 75% probability of approval.

For investors looking to trade DOGE, XRP, and other potential ETF candidates, Bitrue offers a seamless trading experience with competitive fees and access to a wide range of cryptocurrencies.

Frequently Asked Questions (FAQ)

1. Will Dogecoin get an ETF?

Due to its decentralised nature and classification as a commodity, Dogecoin has a strong chance of ETF approval. Its proof-of-work model aligns closely with Bitcoin and Litecoin, increasing its odds of regulatory acceptance.

2. What about XRP? Can it still get an ETF?

XRP’s ETF potential is uncertain due to its legal history with the SEC. If regulators provide more clarity, its chances could improve, but as of now, DOGE has a stronger case.

3. Where can I trade DOGE and XRP now?

You can trade DOGE, XRP, and other major cryptocurrencies on Bitrue, a leading exchange offering competitive fees and deep liquidity for traders.

Investor Caution 

While the crypto hype has been exciting, remember that the crypto space can be volatile. Always conduct your research, assess your risk tolerance, and consider the long-term potential of any investment.

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