Debut trading volume for Grayscale's Spot Dogecoin Exchange Traded Fund (ETF) fell short of expectations, despite being the country's first spot product to track the cryptocurrency.
Bloomberg ETF analyst Eric Balchunas said Tuesday that the Grayscale Dogecoin Trust ETF (GDOG), which debuted on Monday, had $1.4 million in volume, below the $12 million expected, but still “solid for an (average) launch, but low for a 'first-ever spot' product.”
Grayscale's ETFs will be joined by Bitwise's Spot Dogecoin (DOGE) ETF, which will begin trading on Wednesday, after NYSE Arca, a subsidiary of the New York Stock Exchange, filed documents with regulators on Tuesday to certify the approval and listing of the Bitwise Dogecoin ETF (BWOW).
The new Dogecoin fund comes amid a flood of crypto ETFs after the Securities and Exchange Commission relaxed listing standards in September. Asset managers are looking to test investor appetite for more speculative crypto token-related products.
sauce: Eric Balchunas
GDOG, BWOW directly hold Dogecoin
REX Osprey DOGE ETF (DOJE) was launched in September as the first ETF in the US with exposure to Dogecoin. However, in order to bring it to market faster, an approach was taken where cryptocurrencies could not be held directly.
DOJE is filed under the Investment Company Act of 1940 and has a 75-day approval deadline, but is limited to investing in offshore subsidiaries that hold Dogecoin and holding shares in European and Canadian Dogecoin ETFs.
Grayscale and Bitwise's Dogecoin ETF has been filed under the Securities Act of 1933 and will allow you to hold tokens directly, but the approval period is long at 240 days.
DOJE had an even more active debut in September, with trading volume of $17 million on the ETF's debut day, beating analyst estimates of $2.5 million.
New XRP ETF attracts nearly $130 million in inflows upon debut
Meanwhile, on Monday, both Grayscale and Franklin Templeton launched their own Spot XRP (XRP) ETFs, with combined net inflows of $129.95 million, according to SoSoValue.
Related: VanEck Quietly Withdraws BNB ETF Stake in Latest SEC Filing
The Franklin XRP ETF (XRPZ) posted net inflows of $62.6 million, while the Grayscale XRP Trust ETF (GXRP) posted $67.4 million in inflows, well below rival Canary XRP ETF (XRPC), which had inflows of $243 million in its Nov. 14 debut, and Bitwise's XRP ETF, which launched on Thursday and had inflows of more than $105 million on its first trading day.
Balciunas said Monday that the recently launched DOGE and XRP ETFs are just the first of what he and fellow ETF analyst James Seifert estimate will “likely be over 100 stocks over the next six months.”
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