SEC postpones decision on 21Shares Dogecoin ETF, Dogecoin price falls by 2%

The recent decision by the U.S. Securities and Exchange Commission (SEC) to delay the potential approval of the 21Shares Dogecoin ETF has caused a ripple effect within the Dogecoin community. As the community eagerly anticipates any updates on the Dogecoin price, this delay has only added to the uncertainty.

The Dogecoin price has experienced a decline of over 2% in the last 24 hours, contributing to a monthly fall of more than 15%. The SEC’s latest filing indicates a further extension of the decision period by 45 days to evaluate if the proposed ETF meets the necessary listing and trading requirements under Nasdaq Rule 5711(d).

Originally filed for listing and trading on April 28, the 21Shares Dogecoin ETF has only recently been published in the Federal Register on May 19, setting the next deadline for the SEC’s decision on August 17. This delay is not unique to the 21Shares ETF, as issuers like Grayscale and Bitwise are also navigating delays with their own Dogecoin ETF filings. Despite filing for approval in January, both Grayscale and Bitwise face similar extension scenarios with ultimate deadlines in October and November, respectively.

While the delays persist, analysts harbor a 90% likelihood of Dogecoin ETF approval, with a growing optimism stemming from positive signals as the SEC actively engages with Bitwise’s filing for necessary updates. However, the overall market trend for Dogecoin remains sluggish, with the price fluctuating around $0.165 for the past week, currently sitting at $0.163.

Examining the technical indicators, Dogecoin’s price is positioned below the 50-SMA, 100-SMA, and 200-SMA, with the RSI at 39 suggesting a potential downtrend. Additionally, the 20-EMA remains below the 50-EMA, further underscoring the bearish sentiment in the market. Derivatives traders are also exhibiting negative sentiment, with total DOGE futures open interest decreasing by 3% in the last 24 hours, while DOGE futures open interest on major exchanges has reduced by more than 2% on average.

Glassnode data reveals a concerning discrepancy for Dogecoin traders, with losses totaling $132 million compared to only $5.4 million in realized profits. This stark contrast, with realized losses surpassing realized profits by over 40 times, portrays a challenging scenario for Dogecoin investors. In comparison, Bitcoin posted profits of $1.3 billion against losses of $33 million, highlighting a more stable position. Ethereum also showed a healthier balance with losses amounting to 52% of profits. The sentiment in the Dogecoin network, as per Glassnode’s metrics, remains in a Hope/Fear zone with a Spent Output Profit Ratio (SOPR) of 0.96, indicating heightened selling at a loss rather than booking profits.