The Dogecoin ETF has delivered a rather disappointing debut, falling far short of market expectations and trailing behind the launch performance of both the XRP and Solana ETFs. Despite Dogecoin’s popularity and dedicated community, the ETF has struggled to generate significant inflows and attract strong institutional demand. Early trading numbers also came nowhere near the initial projections from top ETF analysts.
Dogecoin ETF Launches With Muted Results
Dogecoin’s much-anticipated ETF debut has gotten off to a slow start, with initial trading figures falling well below projections. Currently, only the Grayscale Dogecoin ETF (GDOG) has been successfully launched. Despite being the second-largest Bitcoin fund and managing one of the top Ethereum ETFs, Grayscale has failed to attract significant institutional or retail interest in its Dogecoin ETF.
According to data from SoSoValue, Grayscale’s Dogecoin ETF recorded a first-day trading volume of just $1.41 million, with cumulative net inflow totaling $1.8 million. Even more surprisingly, investor enthusiasm cooled quickly: the second day of trading on November 25 saw inflows drop sharply to $381,650, a roughly 73% decrease from the previous day.
Earlier this year, the ETFs for DOGE, Solana, and XRP were among the most highly anticipated launches for investors. On November 21, the US Securities and Exchange Commission (SEC) confirmed the approval of the Dogecoin ETF. Despite the initial excitement over the approval and the subsequent rebound in DOGE’s price, the Dogecoin ETF failed to attract strong inflows.
Even top ETF analyst Eric Balchunas initially predicted that the Grayscale Dogecoin ETF could attract $11 million in inflows on its debut day, later revising the estimate to $12 million on the day GDOG went live. With just $1.41 million in inflows, the ETF’s performance has disappointed both investors and analysts.
DOGE ETF Lag Behind Solana And XRP ETFs
The Grayscale Dogecoin ETF’s performance stands in stark contrast to the recent debut of the XRP ETF, which recorded an explosive $243.05 million in daily net inflows on its first day of trading on November 14. This represents a dramatic increase compared to GDOG’s first-day volume, highlighting the level of market excitement surrounding XRP.
Notably, the XRP ETF has recorded almost 10 consecutive days of inflows, totaling $622.1 million in cumulative net inflows. This strong performance was spearheaded by Canary Capital’s XRP ETF, which made a historic debut by hitting $58 million in trading volume.
On the other hand, Solana ETF inflows have also outperformed that of DOGE. When the Solana ETF launched in late October, it attracted over $64 million on its first day of trading. While this initial figure was not as explosive as XRP’s early numbers, it still dwarfed GDOG’s debut by more than 4,439%. Currently, Solana ETFs have maintained steady inflows since their launch, resulting in cumulative net inflows of $621.32 million.
Featured image from Pngtree, chart from Tradingview.com
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