Dogecoin Stuck at $0.098, US ETF Closure on October 14 Raises Tax Questions for German Investors
Dogecoin's price has been stuck in a narrow range between $0.0936 and $0.098, with three failed attempts to break above the $0.098 level in the past week. The cryptocurrency has been trading at $0.0946, with a market capitalization of $14.8 billion and a ranking of 12 among the largest crypto assets. According to the source, the price action is a recovery within a long downward move, with the price around 87% away from its record high of $0.731578 set in May 2021.
The US Bitwise Dogecoin ETF (BWOW) will cease trading on October 14, with the remaining shareholders receiving the net asset value of their shares as of October 21 as a cash payment on October 22. However, for investors in Germany, the choice between a direct purchase and a security-backed ETP (exchange-traded product) is more relevant, as the tax implications differ significantly between the two options.
The 21Shares Dogecoin ETP and the Valour physically backed Dogecoin ETP are the two listed routes available in Germany, with the former carrying a total expense ratio of 2.50% per year. The choice between a direct purchase and an ETP is not just about convenience but also about tax implications, with a direct purchase offering tax-free gains after a holding period of more than one year, while an ETP may incur additional fees.