With the overall cryptocurrency market capitalization surging 2.6% over the past 24 hours, meme token **Dogecoin (DOGE)** has outperformed, rising 4.6% as of 6 p.m. ET. This move isn't just driven by market forces; a key catalyst is capturing investor attention.

## New Spot ETF Launch Driving Capital Flows into Dogecoin

![Shiba Inu sitting with a man.](https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F844394%2Fshiba-inu29.jpg&w=3840&op=resize)

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It's important to keep today's rise in context. Dogecoin started the year trading around $0.40 per token and is now near $0.15. While today's surge is meaningful for recent buyers, many investors are still awaiting a more substantial rally.

News that **Grayscale has launched the first-ever spot ETF tracking Dogecoin** is significant for several reasons. First, this fund legitimizes Dogecoin as an investment with **institutional backing**, a development that surprises many given its meme origins. Second, the ETF's fundamentals are impressive, with Grayscale waiving its 0.35% management fee until the fund reaches $1 billion in assets or three months old. This feature is expected to drive substantial capital into Dogecoin, attracting both institutional and retail investors.

Ultimately, the long-term impact of this ETF launch on Dogecoin's price and adoption remains to be seen, but it positions the token as a top cryptocurrency to watch closely for updates on capital flows.

A new spot ETF has the crypto investing crowd paying even more attention to Dogecoin.

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