With institutions increasingly interested in the cryptocurrency market, BitMEX co-founder Arthur Hayes asserts that Dogecoin (DOGE) is too popular for fund providers to overlook. Hayes predicts that regulators will approve a Dogecoin ETF once both Bitcoin and Ethereum have successfully entered the U.S. public markets.
The Case for a Dogecoin ETF
During an interview with Real Vision CEO Raoul Pal, Hayes discussed the future of meme coins and other cryptocurrencies, highlighting the significant influence of institutional interest. Hayes believes that Dogecoin's widespread popularity makes it an inevitable candidate for an ETF approval. He noted, "It’s the oldest memecoin, it’s on Robinhood. If you’re thinking about Tradfi getting into crypto and they’re gonna put an ETF on anything they can, it’s a high market cap thing."
Why Meme Coins Will Keep Winning
Hayes is optimistic about the future of meme coins, predicting that the market will become even more exuberant as the Federal Reserve and U.S. Treasury continue to increase money supply. "For the person who has just been initiated into crypto, it’s literally the easiest thing to understand," Hayes explained. "I don’t need to understand blockchain, and AI, and crypto, and cryptography."
In a recent blog post, Hayes advised going long on Bitcoin and subsequently on meme coins, reacting to recent interest rate cuts by the Bank of Canada and the European Central Bank. Historically, low interest-rate environments have been favorable for stocks and Bitcoin, leading to capital flowing into riskier assets like meme coins.
Both Hayes and Pal revealed that their portfolios include dog-themed coins such as Dogecoin (DOGE), BONK, and Dogwifhat (WIF). They are confident that Dogecoin will receive ETF approval in the U.S. by the end of the current bull market cycle.
Trends to Watch This Cycle
Pal expressed a strong preference for Solana, claiming he is "ninety percent" invested in it, and described it as "the right bet to have." Conversely, Hayes predicted that Aptos, currently the 27th-ranked cryptocurrency by market cap, will surpass Solana in the layer 1 blockchain space within the next one to three years.
Both investors advised caution regarding Cardano, which they see as a "narrative of the last cycle." Pal also critiqued Ripple (XRP), indicating skepticism about its future performance.
Potential Risks to the Crypto Market
Hayes and Pal also discussed potential risks that could impact the crypto market during this cycle. They expressed concerns about the dominance of large centralized platforms. Pal pointed to Derebit's 90% market share in the options market, while Hayes highlighted the risks associated with Coinbase and various banks that hold Bitcoin backing the world's largest Bitcoin ETFs.
Hayes warned about the vulnerability of U.S. custodians, stating, "If I’m gonna hack crypto, I’m going after one of these U.S. custodians – one of these banks. Never have they had to custody an asset where if they lose it they can’t call up the Treasury or the Fed and get another bailout."
As the market evolves, the predictions and insights from influential figures like Hayes and Pal will continue to shape investor expectations and strategies in the dynamic world of cryptocurrency.
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“
