Simply put
- The Bitwise Dogecoin (DOGE) ETF, known as BWOW, received approval from NYSE Arca on Tuesday.
- This ETF is set to begin trading shortly, joining Grayscale’s Spot Dogecoin ETF starting Monday.
- While its trading volume is much lower than that of XRP and SOL ETFs, it does offer investors more avenues to engage with popular meme coins.
Another Dogecoin (DOGE) ETF is on the way, following the approval of Bitwise’s Dogecoin ETF (BWOW) by NYSE Arca. It has been registered under the Securities Act of 1933. With this, investors can now gain exposure to significant meme coins, as the assets are managed by Coinbase Custody Trust.
The BWOW certification was completed in just one day, while Grayscale’s Spot Dogecoin ETF, GDOG, saw about $1.4 million in daily trading volume. This is notably less than the anticipated $12 million for its first trading day, which, interestingly, Bloomberg ETF analyst Eric Balchunas deemed “solid.” However, he noted it felt underwhelming for a “first-ever spot” product.
“It’s average for a launch, although low for a first-of-its-kind ETF,” Balchunas remarked about GDOG’s initial performance. He also emphasized that this was somewhat expected, citing a saying: “The further you get from BTC, the fewer assets there are.”
The introduction of the DOGE ETF has sparked interest in various altcoin ETFs, though GDOG’s modest debut pales in comparison to the recently approved Solana and XRP products.
A few weeks ago, Canary Capital’s Spot XRP Fund managed to achieve over $58 million in trades during its debut, setting a record for first-day ETF trading volume this year, just edging out Bitwise’s Solana staking ETF, BSOL, which recorded around $57 million in its initial day of trading.
Fund issuers are actively seeking ways to give investors access to Dogecoin. Recently, 21 stocks unveiled TXXD, a long DOGE ETF that’s leveraged at 2x, aimed at giving Nasdaq traders a chance to capitalize on approximately double the daily performance of the token.
Despite being the 10th largest cryptocurrency by market cap, DOGE hasn’t escaped the recent cryptocurrency downturn, having dropped over 24% in the past month. Currently, it’s trading at about $0.15, which is a significant 79% decline from its all-time high of $0.73 in 2021.
Regarding the application, a Bitwise representative shared that the company had no additional comments on the current status.
