Grayscale Dogecoin ETF Launch Falls Short of Expectations

Grayscale's Dogecoin Trust ETF (GDOG) saw a debut trading volume of $1.4 million, falling short of analyst expectations of around $12 million. While considered a decent launch for an average ETF, it was deemed underwhelming for a 'first-ever spot' product tracking Dogecoin.

Bitwise Enters the Dogecoin ETF Arena

Grayscale's offering is poised to be joined by the Bitwise Dogecoin ETF (BWOW), after NYSE Arca filed with regulators to certify its approval and listing. Bitwise anticipates BWOW to begin trading on Wednesday.

Crypto ETF Floodgates Open

These new Dogecoin ETFs arrive amid a surge in crypto ETF launches, spurred by the Securities and Exchange Commission's (SEC) relaxed listing standards in September. Asset managers are keen to gauge investor interest in products linked to more volatile crypto tokens.

Different Approaches to Dogecoin Exposure

GDOG and BWOW directly hold Dogecoin. The REX Osprey DOGE ETF (DOJE), launched in September, took a different approach to expedite its market entry, investing in an offshore subsidiary that holds Dogecoin rather than directly holding the cryptocurrency.

XRP ETF Performance Varies

Meanwhile, the Grayscale and Franklin Templeton XRP ETFs collectively garnered $129.95 million in net inflows. However, this paled in comparison to the Canary XRP ETF (XRPC)'s $243 million debut and the Bitwise XRP ETF's $105 million first-day haul.

Analyst Expects More Crypto ETFs

Analysts project over 100 new crypto ETFs to launch in the next six months, indicating a growing appetite for these investment vehicles.


Risk Warning: this article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform.When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients. 

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