Following the approval of the bitcoin Spot ETF 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. Because of this, an influential influencer in the Dogecoin community took to X (formerly Twitter) to warn investors trying to follow their every move.
Too Risky to Play Spot bitcoin ETF News
Mishaboar, Dogecoin influencer aware an urgent warning to the DOGE community on its X account on Sunday, warning investors against making bad moves as cryptocurrency market volatility continues. Mishaboar warned his more than 42,000 followers that news of the ETF's approval might not push the market in the direction they expected.
Furthermore, he emphasized that those who are trying to chase short-term gains in this market, or those who possess only limited liquidity along with a low risk tolerance could run the risk of taking the wrong path in the market.
According to the influencer, as the market continues to fluctuate wildly as a result of the anticipation surrounding bitcoin spot ETF trading, investors could be subject to catastrophic levels of volatility. This becomes an even bigger problem when these investors are overexposed to the market.
Mishaboar warns that those currently buying spot ETFs are not actually buying bitcoin. Rather, they are buying notes issued by the asset managers that issued the ETFs – “the traditional financial institutions that some argued bitcoin was meant to replace.”
The Dogecoin influencer further explains that companies like BlackRock and Fidelity that issue these ETFs don't really care what happens to the price of bitcoin. Rather, “their concern is power and control, allowing them to generate substantial profits regardless of the direction the btc price is heading,” says Mishaboar.
DOGE price struggles at $0.08 | Source: DOGEUSD on Tradingview.com
No Dogecoin ETF Needed
As ETF discussions heat up around the crypto communities, debates have arisen over which asset will be next to gain ETF approval from the SEC. Naturally, companies like ethereum and XRP have been at the forefront of these discussions. But unlike these communities, the Dogecoin community has not been at all enthusiastic about the idea of a possible Dogecoin ETF.
In response to a comment from another X user asking the DOGE community to stop calling for a Dogecoin ETF, Mishaboar agrees and called the idea of a Dogecoin ETF is a “monstrosity.” And Mishaboar is not the only one who holds this view of the DOGE ETF.
Pseudonymous crypto analyst and expert @itsALLrisky has also shared opposing views towards a Dogecoin ETF. According to the Dogecoin influencer, DOGE would be better off without an ETF. Some of the reasons given for this opinion include the fact that it would work better as a digital currency than as an institutional investment. In addition, its status as a meme currency is a deterrent for institutional investors.
Featured image from The Independent, chart from Tradingview.com
