Dogecoin (DOGE -2.09%) was no one's idea of a pet cryptocurrency on Thursday. The bellwether meme coin had a rough day on the market and in late afternoon action was trading down by nearly 7% as of 4 p.m. ET. That fall was largely because of a decision -- or rather, something of a non-decision -- by a top regulator.
A new delay for the dog
A clutch of crypto news sites reported that the U.S. Securities and Exchange Commission (SEC) has again delayed rendering a decision on approving an exchange-traded fund (ETF), Bitwise Dogecoin ETF. That was part of a general delay affecting other altcoin ETFs that have applied to be publicly traded, namely the Grayscale Hedera Trust and the VanEck Avalanche ETF.
Image source: Getty Images.
Crypto ETFs burst onto the scene when the first Bitcoin ETFs were approved by the SEC at the start of 2024.
The attraction of these investments is that they allow crypto enthusiasts to put money almost directly into their chosen coin or token without actually having to hold it directly. This is because ETFs, like stocks, are publicly traded and can therefore be bought and sold like other securities. By contrast, direct ownership can be cumbersome as it involves the management of digital wallets.
Patience advised
This feels more like a brief, annoying setback than a lasting defeat. The current presidential administration is clearly very pro-crypto, and I feel before long Bitwise Dogecoin ETFs and other altcoin ETFs will get the regulator's nod. It can be hard to be patient in the fast-moving world of crypto, but Dogecoin bulls certainly shouldn't be dissuaded by this latest development.
