GDOG records $1.4 million in first-day volume, falling short of analyst forecasts as Bitwise prepares to launch its own directly backed Dogecoin ETF.
The debut of Grayscale’s spot Dogecoin ETF (GDOG) generated less trading activity than anticipated, marking a quieter-than-expected start for the first U.S. spot product tracking the popular meme-inspired cryptocurrency. Despite being a landmark launch, early volume signaled more cautious investor appetite for niche crypto assets compared to broader digital asset ETFs.
GDOG Launch Volume Misses Analyst Estimate
Bloomberg ETF analyst Eric Balchunas revealed that GDOG saw $1.4 million in first-day trading volume, significantly below his projection of around $12 million.
Balchunas described the result as “solid for an average launch but low for a first-ever spot product,” highlighting the contrast between market expectations and actual demand.
The ETF’s debut comes during a period of rapidly expanding crypto ETF listings, following loosened requirements by U.S. regulators in September that enabled issuers to introduce products tracking a wider range of cryptocurrencies.
Bitwise Set to Enter the Market With Direct DOGE Exposure
Grayscale’s Dogecoin ETF will soon be joined by Bitwise’s offering after NYSE Arca filed to certify approval for the Bitwise Dogecoin ETF (BWOW). Bitwise confirmed that trading for BWOW is expected to begin Wednesday.
Both GDOG and BWOW are structured to directly hold Dogecoin, offering spot exposure under the Securities Act of 1933. Compared to earlier structures, these products undergo a longer 240-day approval cycle, but provide a more direct connection to the underlying asset.
Contrast With DOJE’s More Active Debut
The REX Osprey DOGE ETF (DOJE), which launched in September, took a different regulatory route by filing under the Investment Company Act of 1940, allowing it to come to market faster. However, that structure prevents direct DOGE ownership. Instead, it invests through an offshore subsidiary and foreign Dogecoin ETFs.
Despite these limitations, DOJE recorded a stronger debut, generating $17 million in trading volume, well above its expected $2.5 million.
XRP ETFs Generate Stronger Demand
While Dogecoin ETFs saw softer momentum, newly launched spot XRP products attracted hefty inflows. Grayscale and Franklin Templeton’s XRP ETFs brought in a combined $129.95 million on their first trading day.
The Franklin XRP ETF received $62.6 million, while the Grayscale XRP Trust ETF added $67.4 million—though both trailed behind the earlier Canary XRP ETF, which drew $243 million on launch, and Bitwise’s XRP ETF, which exceeded $105 million in debut inflows.
ETF Market Poised for Major Expansion
Balchunas noted that the new DOGE and XRP funds represent only the beginning of an accelerating wave. He and fellow analyst James Seyffart estimate over 100 new crypto ETFs may arrive within the next six months, reflecting growing issuer competition and investor diversification across digital assets.
Although Grayscale’s GDOG underperformed relative to debut expectations, the broader landscape of crypto ETFs continues to expand rapidly. With Bitwise entering the Dogecoin market and XRP products attracting strong inflows, demand for specialized digital asset exposure remains robust even as investor selectivity increases.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.