SEC Delays 21Shares Dogecoin ETF Decision Dogecoin Price Drops 2%

The U.S. Securities and Exchange Commission (SEC) has delayed its decision on the 21Shares spot Dogecoin ETF, extending the waiting period for approval. This delay has contributed to a further decline in positive sentiment within the Dogecoin community, as anticipation around the Dogecoin price continues to build.

The SEC's decision to postpone the approval of the 21Shares Dogecoin ETF has led to a more than 2% drop in the Dogecoin price over the last 24 hours, extending the monthly fall to over 15%. The latest SEC filing indicates that the government agency has extended the decision period to another 45 days, seeking more time to evaluate whether the proposed ETF meets listing and trading requirements under Nasdaq Rule 5711(d).

The 21Shares Dogecoin ETF was initially filed for listing and trading on April 28, but it was only published in the Federal Register on May 19. This means that August 17 is the next deadline for the SEC to make its decision. The delay in the 21Shares Dogecoin ETF is not an isolated incident, as other issuers such as Grayscale and Bitwise are also seeking approval for their Dogecoin ETFs. Both Grayscale and Bitwise filed for approval in January this year, but the SEC has delayed the decision for both, with final deadlines falling in October and November, respectively.

Despite the delays, analysts have raised the odds for Dogecoin ETF approval to 90%. This optimism is based on good signs emerging as the SEC engages with Bitwise’s filing to update the application. However, the bearish trend for Dogecoin continues, with the price falling more than 2% in the last 24 hours and trading range-bound near $0.165 for a week. The price was trading at $0.163, with a 24-hour low and high of $0.1623 and $0.1678, respectively.

In the daily timeframe, the price was trading below the 50-SMA, 100-SMA, and 200-SMA at the time of writing. The Relative Strength Index (RSI) slipped to 39, signaling potential for a downslide move. Moreover, the bearish trend continued for DOGE as the 20-EMA was still below the 50-EMA. The negative sentiment among derivatives traders is also evident, with the total DOGE futures open interest falling 3% to $1.77 billion in the last 24 hours. DOGE futures OI on major exchanges dropped more than 2% on average.

According to Glassnode data, Dogecoin traders have realized a massive $132 million in losses, compared to just $5.4 million in realized profits, the worst P&L imbalance among all top 10 crypto. In contrast, Bitcoin posted $1.3 billion in profits and only $33 million in losses, while Ethereum losses were 52% of profits. DOGE’s realized loss was over 40x higher than its realized profit, a figure unmatched even by volatile meme tokens. The network was operating in the Hope/Fear zone per Glassnode’s sentiment framework, with a Spent Output Profit Ratio (SOPR) of just 0.96, indicating more users are selling at a loss than booking profit.