The recent launch of the Dogecoin ETF has created a buzz, but the results have left many investors feeling uninspired. With its initial performance failing to meet market expectations, the ETF is struggling to find traction amidst the optimism surrounding cryptocurrencies. The familiar enthusiasm for Dogecoin, coupled with its significant community support, does not seem to be translating into robust investment interest.
A Lackluster Start for Dogecoin ETF
As anticipated, the Dogecoin ETF debuted to mixed reactions, with trading volumes that significantly underwhelmed both investors and analysts. Currently, only the innovative Grayscale Dogecoin ETF (GDOG) has surfaced, yet interest remains notably low. While Grayscale is recognized for its prominent Bitcoin and Ethereum funds, this new offering has not sparked the expected excitement among either institutional or retail investors.
Data reveals that Grayscale’s Dogecoin ETF incurred a modest first-day trading volume of approximately $1.41 million, culminating in total inflows of around $1.8 million. Alarmingly, enthusiasm dwindled markedly on the second day, with inflows dropping to just $381,650—representing a staggering 73% decline.
The launch of Dogecoin, alongside other much-anticipated ETFs like those for Solana and XRP, was highly publicized this year. Official word from the US Securities and Exchange Commission (SEC) on November 21 marked the approval of the Dogecoin ETF. Following this announcement, there was a momentary rally in DOGE’s price, yet actual investment inflows failed to materialize as anticipated.
Even noted ETF analyst Eric Balchunas had originally projected an influx of $11 million on the ETF’s debut. He subsequently adjusted this number to $12 million as the launch approached. The reality of just $1.41 million in inflows illustrates a stark contrast to these earlier predictions, leading to disappointment across the investment community.
Comparison with XRP and Solana ETFs
When evaluating how the Grayscale Dogecoin ETF has fared, it is essential to look at its performance relative to the XRP ETF, which experienced a much more explosive debut. The XRP ETF recorded remarkable net inflows of approximately $243.05 million on its first day, showcasing a vastly different market response compared to GDOG.
Moreover, the XRP ETF has enjoyed several consecutive days of positive inflows, amassing a total of $622.1 million in net inflows to date. Fueled by excitement and investor confidence, the Canary Capital’s XRP ETF has made waves with a groundbreaking trading volume of $58 million at launch.
Similarly, the Solana ETF has shown a robustness that outpaces Dogecoin significantly. Upon its launch in late October, the Solana ETF attracted over $64 million on day one. This figure, while not quite as staggering as XRP’s, still dwarfed Dogecoin’s debut performance by an astonishing 4,439%. Continuous inflows have been reported for Solana, leading to cumulative net inflows of $621.32 million.
