Grayscale spot Dogecoin ETF falls under volume expectations on debut

Debut trading volume for Grayscales spot Dogecoin exchange-traded fund (ETF) came in lower than expected, despite being the first spot product in the country tracking the cryptocurrency.

Bloomberg ETF analyst Eric Balchunas said on Tuesday that the Grayscale Dogecoin Trust ETF‘s (GDOG) debut on Monday took in $1.4 million in volume, below his expectation of $12 million, while still being “solid for an [average] launch but low for a ’first-ever spot product.”

Grayscales ETF is set to be joined by a spot Dogecoin (DOGE) ETF from Bitwise, after New York Stock Exchange subsidiary NYSE Arca filed with regulators on Tuesday to certify its approval and listing of the Bitwise Dogecoin ETF (BWOW), which Bitwise said would begin trading on Wednesday.

The new Dogecoin funds come amid a flood of crypto ETFs after the Securities and Exchange Commission loosened listing standards in September, as asset managers look to test investor appetite for products linked to more speculative crypto tokens.

Source: Eric Balchunas

GDOG, BWOW directly hold Dogecoin

The REX Osprey DOGE ETF (DOJE) launched in September as the first in the US with exposure to Dogecoin; however, it took the approach of not being able to directly hold the cryptocurrency to get to market faster.

DOJE was filed under the Investment Company Act of 1940, which provides a 75-day approval window, but is limited to investing in an offshore subsidiary that holds Dogecoin and holding shares in European and Canadian Dogecoin ETFs.

Grayscale and Bitwises Dogecoin ETFs were filed under the Securities Act of 1933, meaning they can directly hold the token, but have a longer approval window of 240 days.

DOJE saw a more lively debut in September, as the ETF saw $17 million in volume traded on its debut day, exceeding analyst expectations of $2.5 million.

New XRP ETFs pull in nearly $130 million inflows on debut

Meanwhile, on Monday, Grayscale and Franklin Templeton both launched their own spot XRP (XRP) ETFs that took in combined net inflows of $129.95 million, according to SoSoValue.

The Franklin XRP ETF (XRPZ) saw $62.6 million in net inflows, while the Grayscale XRP Trust ETF (GXRP) took in $67.4 million, far below their rival, the Canary XRP ETF (XRPC), which took in $243 million on its Nov. 14 debut and Bitwises XRP ETF, which launched on Thursday and took in over $105 million on its first trading day.

Balchunas said on Monday that the recently launched DOGE and XRP ETFs are just the first in what he and fellow ETF analyst James Seyffart estimated to be “likely over 100 in [the] next six months.”