Institutional Hype and Derivatives Drive Dogecoin's Record Rally — ETF Delay Only Fuels Speculation

Dogecoin's price surged to a six-week high as anticipation for the first-ever Dogecoin ETF continued to build, with traders and investors showing increased speculative interest in the asset. As of the latest available data, DOGE/USD reached $0.2603, reflecting a 3.05% increase in the past 24 hours and a weekly gain exceeding 22%, outpacing major cryptocurrencies like Bitcoin and Ethereum. The coin's trading volume also saw a 40% rise over the last day, signaling robust buying pressure in the market.

The surge was further supported by a rise in open interest for Dogecoin futures, which increased by 5.27% within the same 24-hour period, according to Coinglass data. Over 71% of Binance derivatives traders with open DOGE positions were long, indicating a strong bullish sentiment. This increase in derivatives activity suggests a growing appetite among traders to speculate on the coin's price movements, especially with the anticipated arrival of a more accessible investment vehicle.

The REX-Osprey Doge ETF, which is being filed by asset managers Osprey Funds and Rex Shares, was expected to debut on Thursday but has now been delayed until next week. According to Bloomberg analyst Eric Balchunas, the delay was announced to provide additional time for preparations. The fund will hold a combination of Dogecoin and its derivatives under a Cayman Islands subsidiary, marking a significant development in the evolution of crypto-related investment products in the U.S. market.

In parallel, Dogecoin's price rise has been accompanied by a growing institutional interest. CleanCore Solutions, the first publicly traded Dogecoin treasury company listed as ZONE on the NYSE American, has announced the accumulation of over 500 million DOGE tokens, valued at more than $125 million. The company's strategic purchases have been seen as a sign of growing recognition of Dogecoin's potential as a reserve asset and its expanding utility in payments, remittances, and tokenization.

The broader market context also contributed to DOGE's recent performance, as investors anticipated a potential interest rate cut in response to recent poor job data and rising inflation. The price action of the last week has reflected a broader bullish trend in the crypto market, with Dogecoin outperforming other top 10 cryptocurrencies by market capitalization. While the coin has yet to reach its 2021 all-time high of over $0.73, its recent momentum suggests that market participants are beginning to view the asset more favorably.

The upcoming launch of the Rex-Osprey DOGE ETF is expected to provide traditional investors with a new and regulated way to access Dogecoin. The ETF's ticker symbol will be DOJE, and it is projected to offer exposure to the original and most valuable meme coin. The product will differ from spot Bitcoin and Ethereum ETFs in its structure, but the end result is expected to be similar: enabling a broader investor base to gain exposure to Dogecoin through a familiar financial instrument.