Dogecoin ETFs Struggle Despite Strong Market Interest

Dogecoin (DOGE) keeps attracting attention in the wider crypto market, but its exchange-traded products (ETPs) are facing a tougher path. 

This comes as cautious investor sentiment, reduced trading activity, and low capital inflow have slowed down the investment funds growth Still, some experts believe Dogecoin could gain momentum over time.

Dogecoin ETFs Lag as Investors Shift to Other Crypto Tokens

Dogecoin ETF products have not managed to capture the interest of large investors. The crypto fund issued by Grayscale and Bitwise has seen a sharp drop in activity. 

SoSoValue’s data from early December shows no new inflows over three days, and total trading volume has fallen to around $159,000. This is significantly lower than the more than $3,000,000 recorded in late November. 

Despite the weak ETF performance, the memecoin itself remains active in the market. Dogecoin recorded more than $1million in trading volume in the past day and holds a strong market capitalization of about $23.5 billions. 

While Dogecoin-related products face challenges, other digital assets are seeing stronger momentum. XRP ETFs recently recorded inflows worth more than $16,000,000 in a single day, and Solana ETFs added around $11,000,000. 

Dogecoin and Litecoin ETFs Sees Unusual Flow Streak

Analysts have pointed out several reasons behind the slow activity. Many investors seem more comfortable trading the token directly on centralized exchanges instead of buying ETF products. 

Dogecoin’s reputation as a speculative asset also creates hesitation among fund managers who often prefer assets with more predictable fundamentals. 

This trend is not unique to Dogecoin. The Litecoin ETF has also already gone more than a week without fresh inflows. This shows a wider pattern across non-Bitcoin (BTC), non-Ethereum (ETH) crypto products.

While some funds struggle, the REX Osprey DOJE fund, however, showed a stronger early performance when it launched in September. It attracted almost $6 million in trading volume within its first hour. The fund now manages more than $23 million in assets, making it one of the more successful Dogecoin-linked products.

The Grayscale Dogecoin Trust had a slow start after launching in November. People expected a big first day, but trading was only about $1.5 million, far below the $12 million predicted.

Experts Stay Positive as New Dogecoin ETFs Prepare to Launch

Even though current Dogecoin ETFs are doing differently, some experts are still hopeful about the coin’s future. Crypto analyst Trader Tardigrade says Dogecoin could reach $1 in 2026. He noted that it has stayed strong around an important support level, even when the market is slow.

Additionally, more ETFs are coming soon. 21Shares updated its filing to launch a Dogecoin ETF on Nasdaq with the ticker TDOG. Dogecoin has also been added to the Franklin Crypto Index ETF. This is thanks to the new regulatory rules that let fund managers include more types of digital coins.