In the wake of the Bitcoin Spot ETF approval by the United States Securities and Exchange Commission (SEC), there has been a lot of volatility in the market that has affected other cryptocurrencies such as Dogecoin. Due to this, a prominent influencer in the Dogecoin community has taken to X (formerly Twitter) to warn investors who are trying to chase each move.
Too Risky To Play The Spot Bitcoin ETF News
Dogecoin influencer Mishaboar posted an urgent warning for the DOGE community on his X account on Sunday, warning investors of making bad moves as the crypto market volatility continues. Mishaboar warned his over 42,000 followers that news of the ETF approval may not drive the market in the direction they were expecting.
He further emphasized that those who are trying to chase short-term gains in this market, or those who possess only limited liquidity coupled with a low-risk tolerance could be at risk of turning the wrong way in the market.
According to the influencer, as the market continues to fluctuate wildly as a result of the anticipation around the Bitcoin Spot ETF trading, investors could be subject to catastrophic volatility levels. This becomes even more of a problem when these investors are overexposed to the market.
Mishaboar cautions that those who are currently buying the Spot ETFs are not actually buying Bitcoin. Rather, they are buying IOUs issued by the asset managers who issued the ETFs – “the traditional finance institutions that, according to some, Bitcoin was meant to replace.”
The Dogecoin influencer further explains that the likes of BlackRock and Fidelity who issue these ETFs do not really care what happens to the bitcoin price. Rather, “their concern is with power and control, enabling them to generate substantial profits regardless of the direction in which the price of BTC is headed,” Mishaboar states.
DOGE price struggles at $0.08 | Source: DOGEUSD on Tradingview.com
Dogecoin ETF Not Needed
As ETF discussions heat up around crypto communities, debates have erupted about which asset will be next to get approval for an ETF from the SEC. Naturally, the likes of Ethereum and XRP have been at the forefront of these discussions. But unlike these communities, the Dogecoin community has been less than ecstatic about the idea of a possible Dogecoin ETF.
Responding to a comment from another X user asking the DOGE community to stop asking for a Dogecoin ETF, Mishaboar agrees and called the idea of a Dogecoin ETF a “monstrosity.” And Mishaboar is not the only one who possesses this view of DOGE ETF.
Pseudonymous crypto expert and analyst @itsALLrisky has also shared opposing views toward a Dogecoin ETF. According to the Dogecoin influencer, DOGE would be better off without an ETF. Some of the reasons given for this view include the fact that it would perform better as a digital currency rather than an institutional investment. As well as its meme coin status being a deterrent for institutional investors.
Featured image from The Independent, chart from Tradingview.com
Source: https://bitcoinist.com/dogecoin-bitcoin-spot-etfs/