Grayscale’s first U.S. spot Dogecoin exchange-traded fund launched this week with trading activity well below expectations, highlighting cautious investor sentiment around speculative crypto products. The Grayscale Dogecoin Trust ETF (GDOG) recorded $1.4 million in first-day volume—far short of the $12 million projected by Bloomberg ETF analyst Eric Balchunas.
Balchunas described the figure as “solid for an average launch” but notably low for a first-of-its-kind spot crypto ETF. The muted debut comes as asset managers race to introduce new digital-asset funds following the SEC’s September decision to loosen listing standards for crypto-linked products.
Grayscale’s DOGE fund will soon face direct competition from Bitwise. On Tuesday, NYSE Arca submitted a regulatory filing to certify approval of the Bitwise Dogecoin ETF (BWOW), which is slated to begin trading on Wednesday.
Direct-Hold Structure Sets GDOG Apart
The latest Dogecoin ETFs differ significantly in structure from earlier products. The newly launched GDOG and soon-to-trade BWOW are built under the Securities Act of 1933, allowing them to directly hold Dogecoin. This structure requires a longer 240-day approval window but provides the purity of holding the underlying token.
In contrast, the REX Osprey DOGE ETF (DOJE), launched in September, gained faster market entry by filing under the Investment Company Act of 1940, which offers a 75-day approval path. However, DOJE cannot directly hold Dogecoin. Instead, it:
- Invests in an offshore subsidiary with indirect DOGE exposure
- Holds shares of European and Canadian Dogecoin ETFs
DOJE’s debut drew strong interest, trading $17 million on its first day—far above expectations of $2.5 million. That figure stands in sharp contrast to GDOG’s more tempered performance.
XRP ETFs See Stronger Momentum
While Dogecoin ETFs generated mixed reactions, XRP-linked products saw far stronger inflows. On Monday, Grayscale and Franklin Templeton launched their own spot XRP ETFs, collectively pulling in $129.95 million in net inflows, according to SoSoValue.
Breakdown of first-day inflows:
- Franklin XRP ETF (XRPZ): $62.6 million
- Grayscale XRP Trust ETF (GXRP): $67.4 million
- Canary XRP ETF (XRPC): $243 million on Nov. 14 debut
- Bitwise XRP ETF: Over $105 million on launch day
Balchunas noted that DOGE and XRP ETFs represent just the beginning of a broader wave, predicting—along with analyst James Seyffart—that more than 100 crypto ETFs may enter the market over the next six months.