Grayscale DOGE ETF Launch Sees Lower-Than-Expected Trading Volume

The much-anticipated launch of Grayscale’s spot Dogecoin exchange-traded fund (ETF) didn’t quite hit the mark in terms of trading volume, even though it’s a pioneering product in the country focusing on this cryptocurrency.

Bloomberg ETF analyst Eric Balchunas shared on Tuesday that the Grayscale Dogecoin Trust ETF’s (GDOG) first day, which was Monday, only pulled in $1.4 million in trading volume. This is a far cry from his expectation of $12 million. While he noted that it’s “solid for an [average] launch,” it’s still low for a ground-breaking ‘first-ever spot’ product.

Excitingly, Grayscale isn’t alone! A spot Dogecoin (DOGE) ETF from Bitwise is also on the horizon. New York Stock Exchange subsidiary NYSE Arca filed with regulators on Tuesday to get the Bitwise Dogecoin ETF (BWOW) approved and listed, and it’s set to kick off trading on Wednesday.

This flurry of new Dogecoin funds comes at a time when there’s an influx of crypto ETFs, following the Securities and Exchange Commission’s decision to relax listing standards back in September. This has asset managers eager to see if investors are keen on products associated with more speculative crypto tokens.

GDOG and BWOW: Dogecoin Holders!

The REX Osprey DOGE ETF (DOJE) made its debut in September as the first US ETF with exposure to Dogecoin. However, it took a different route and isn’t able to directly hold the cryptocurrency, allowing it to get to market quicker.

DOJE was registered under the Investment Company Act of 1940, which provides a 75-day window for approval but limits investments to an offshore subsidiary that holds Dogecoin and European or Canadian Dogecoin ETFs.

In contrast, Grayscale and Bitwise’s Dogecoin ETFs, filed under the Securities Act of 1933, can directly hold the token but require a longer approval timeline of 240 days.

DOJE had a lively start in September, with a whopping $17 million in volume on its first day, surpassing analyst expectations of only $2.5 million.

New XRP ETFs Make a Splash!

In other exciting news, on Monday, Grayscale and Franklin Templeton rolled out their own spot XRP (XRP) ETFs, which together saw an impressive net inflow of $129.95 million, according to SoSoValue.

Related: VanEck quietly reverses course on BNB ETF staking in recent SEC filing

The Franklin XRP ETF (XRPZ) attracted $62.6 million in net inflows, while the Grayscale XRP Trust ETF (GXRP) brought in $67.4 million. Both still lagged behind their competitor, the Canary XRP ETF (XRPC), which welcomed a staggering $243 million on its debut back in November, as well as Bitwise’s XRP ETF, which launched last Thursday with over $105 million on its first trading day.