Dogecoin (DOGE) is experiencing a unique surge in hype within the cryptocurrency ecosystem, driven by growing speculation about the potential approval of a spot ETF product tracking the coin in the near future.

Dogecoin Showing Mixed Reaction

While the spotlight has been on Ethereum following the approval of spot ETH ETFs, Dogecoin has also garnered significant attention. The passing of Kabosu, the dog that inspired the creation of Dogecoin and the broader meme coin movement, has sparked numerous tributes to the coin.

Tesla CEO and X owner Elon Musk's tribute post has helped fuel a mild bullish run in DOGE's price. At the time of writing, DOGE is sustaining some of its gains, jumping 3.87% to $0.1706. However, the 24-hour trading volume tells a different story, as it has decreased by 54.31% to $1,428,386,003. This discrepancy between price growth and trading volume is puzzling, as these metrics are typically correlated. The current low trading volume suggests limited retail interest in DOGE, which could potentially drag the price down during the long US Memorial Day season.

Derivatives Market Paints a Bullish Picture

In contrast to the retail market, the Dogecoin derivatives market is showing a different trend. According to data from Coinalyze, Dogecoin's open interest in the past 24 hours has surged by 6.86% to $895.7 million. This indicates that DOGE derivatives traders are excited about the market prospects, despite the bearish sentiment in the spot market.

Prospects of a DOGE ETF Approval

When spot Bitcoin ETF products launched in January, there were general expectations that no other cryptocurrency would receive similar approval. However, these expectations changed earlier this week when the SEC approved eight spot Ethereum ETF products.

With this new development, many market proponents are now hopeful that meme coins like Dogecoin also have a fair chance of securing ETF approval in the future. While Dogecoin and other meme coins started as jokes, many are now pivoting to offer utility. From Shiba Inu's push to launch Shibarium to Floki's launch of TokenFi, the landscape is evolving. With these advancements, expectations remain that mainstream adoption through ETFs may be achieved in the future.