Grayscale's newly launched spot Dogecoin exchange-traded fund recorded $1.4 million in trading volume during its Monday debut, falling well short of analyst projections and raising questions about investor appetite for meme coin products. The subdued reception contrasts sharply with stronger launches from competing cryptocurrency ETFs in recent weeks. Bitwise filed paperwork Tuesday for its own Dogecoin fund to begin trading Wednesday.
What Happened: Muted Launch
The Grayscale Dogecoin Trust ETF (GDOG) attracted considerably less interest than anticipated, according to Bloomberg ETF analyst Eric Balchunas, who had projected $12 million in first-day volume. Balchunas described the actual $1.4 million figure as "solid for an [average] launch but low for a 'first-ever spot' product" in comments posted Tuesday.
The New York Stock Exchange subsidiary NYSE Arca submitted regulatory filings Tuesday to certify approval and listing of the Bitwise Dogecoin ETF (BWOW), which Bitwise confirmed would commence trading Wednesday.
Both GDOG and BWOW were filed under the Securities Act of 1933, allowing direct ownership of the underlying token but requiring a 240-day approval window.
This differs from the REX Osprey DOGE ETF (DOJE), which launched in September as the first U.S. fund with Dogecoin exposure but cannot directly hold the cryptocurrency.
DOJE operates under the Investment Company Act of 1940, providing a faster 75-day approval process while limiting the fund to investing through an offshore subsidiary and holding shares in European and Canadian Dogecoin ETFs. Despite structural limitations, DOJE posted $17 million in debut trading volume, surpassing analyst expectations of $2.5 million.
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Why It Matters: ETF Flood Continues
The lackluster Dogecoin ETF debut comes as asset managers test investor interest in products tracking more speculative digital tokens following the Securities and Exchange Commission's decision to loosen listing standards in September.
Meanwhile, spot XRP ETFs from Grayscale and Franklin Templeton demonstrated stronger market reception Monday, pulling in combined net inflows of $129.95 million according to SoSoValue data. The Franklin XRP ETF (XRPZ) recorded $62.6 million in net inflows while the Grayscale XRP Trust ETF (GXRP) attracted $67.4 million.
However, both trailed the Canary XRP ETF (XRPC), which secured $243 million during its Nov. 14 debut, and Bitwise's XRP ETF, which captured over $105 million on its Thursday launch.
Balchunas and fellow analyst James Seyffart project the recent Dogecoin and XRP products represent just the beginning, estimating "likely over 100" new cryptocurrency ETFs will launch within the next six months.
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