Grayscale's Dogecoin ETF Debut Sees Lower Trading Volume Than Anticipated

According to Cointelegraph, Grayscale's spot Dogecoin exchange-traded fund (ETF) launched with a trading volume that fell short of expectations. The Grayscale Dogecoin Trust ETF (GDOG) recorded $1.4 million in trading volume on its debut, significantly below the anticipated $12 million. Bloomberg ETF analyst Eric Balchunas noted that while the volume was solid for an average launch, it was low for a 'first-ever spot' product. This ETF is set to be joined by another spot Dogecoin ETF from Bitwise, following NYSE Arca's filing with regulators to approve and list the Bitwise Dogecoin ETF (BWOW), which is expected to begin trading soon. The introduction of these Dogecoin funds comes amid a surge in crypto ETFs, following the Securities and Exchange Commission's decision to relax listing standards in September. This regulatory shift has prompted asset managers to explore investor interest in products linked to more speculative crypto tokens. The REX Osprey DOGE ETF (DOJE), launched in September, was the first in the U.S. to offer exposure to Dogecoin, although it did not directly hold the cryptocurrency to expedite its market entry. Filed under the Investment Company Act of 1940, DOJE faced a 75-day approval window but was limited to investing in an offshore subsidiary holding Dogecoin and shares in European and Canadian Dogecoin ETFs. In contrast, Grayscale and Bitwise's Dogecoin ETFs were filed under the Securities Act of 1933, allowing them to directly hold the token but requiring a longer approval window of 240 days. DOJE's debut was more robust, with $17 million in trading volume, surpassing analyst expectations of $2.5 million. Meanwhile, Grayscale and Franklin Templeton launched their own spot XRP ETFs, which collectively attracted nearly $130 million in net inflows. The Franklin XRP ETF (XRPZ) saw $62.6 million in net inflows, while the Grayscale XRP Trust ETF (GXRP) garnered $67.4 million. These figures were overshadowed by the Canary XRP ETF (XRPC), which achieved $243 million on its debut, and Bitwise's XRP ETF, which launched with over $105 million in its first trading day. Balchunas remarked that the recent DOGE and XRP ETF launches are just the beginning, with expectations of over 100 similar products emerging in the next six months. This trend highlights the growing interest and diversification in cryptocurrency investment options, as asset managers continue to test the waters with new offerings.