Dogecoin Bounces Off $0.098 Zone Amid ETF Closure and Tax Implications

Dogecoin is trading at $0.0946 on October 1, a 0.4 percent increase from 24 hours earlier. This is the third time in a week that the price has bounced off the zone around $0.098. The US Bitwise Dogecoin ETF, which is closing on October 14, has not been a popular choice for investors in Germany, as US spot crypto funds are not authorized for distribution under European law.

The closure of the ETF is due to low demand, with the fund's assets slipping below one million dollars in 2026. However, other DOGE funds have seen inflows in recent weeks, with around $2.9 million in net inflows reported for the week to September 25. This is a small fraction of the market's $14.8 billion capitalization.

Investors in Germany have two options for holding Dogecoin: a direct purchase or a security, such as an exchange-traded product (ETP). The choice between these options has tax implications, with direct purchases eligible for tax-free gains after a holding period of more than one year.