TLDR
- Dogecoin ETFs see a sharp drop in trading volume, falling to $142,000 on Monday.
- Bitcoin and Ether ETFs dominate the crypto market with $3.1 billion and $1.3 billion in TVT.
- Dogecoin ETFs struggle despite DOGE’s strong $1.1 billion market volume.
- Other altcoin ETFs, including Solana and XRP, outperform Dogecoin ETFs.
US spot Dogecoin exchange-traded funds (ETFs) have faced a notable slowdown in demand, with their total value traded (TVT) reaching a low point. According to SoSoValue data, the TVT for Dogecoin ETFs hit only $142,000 on Monday, marking the lowest figure since their launch. This sharp drop in activity contrasts with the high market liquidity of Dogecoin, with over $1.1 billion in spot trading volume recorded for DOGE across broader markets.
The cooling demand for Dogecoin ETFs follows a pattern of declining trading activity. Late November saw a brief surge in volume, with trading topping $3.23 million on some days. However, this uptick was short-lived, and the current performance indicates that interest in Dogecoin ETFs has waned significantly.
Limited Success for Dogecoin ETFs
The Grayscale Dogecoin ETF, which launched in November, struggled to meet initial expectations for volume. On its debut day, the ETF only saw $1.4 million in trading, a far cry from the $12 million in volume initially predicted by ETF analyst Eric Balchunas. Despite the decline in activity, Dogecoin remains a popular asset, with DOGE’s broader market activity maintaining strong liquidity.
However, it is clear that traders are choosing to access Dogecoin directly on exchanges instead of using the ETF wrapper. This discrepancy highlights a preference for direct trading, which offers greater flexibility and potentially lower fees compared to ETF products. The limited success of Dogecoin ETFs, combined with DOGE’s ongoing popularity, suggests that many traders do not find ETFs to be an ideal vehicle for accessing the asset.
Bitcoin and Ether ETFs Dominate the Market
While Dogecoin ETFs have faced declining activity, Bitcoin and Ether ETFs continue to attract significant attention from traders. On December 8th, Bitcoin ETFs recorded a total value traded of $3.1 billion, while Ether ETFs reached $1.3 billion. These figures demonstrate the sustained interest in Bitcoin and Ethereum-based exchange-traded products, which remain the largest and most liquid assets in the crypto ETF space.
Other altcoin ETFs, such as those based on Solana and XRP, have also outperformed Dogecoin ETFs in terms of trading volume. Solana ETFs saw $22 million in TVT, while XRP ETFs reached $21 million. This performance further solidifies Bitcoin and Ether’s position as the dominant assets in the regulated crypto ETF market.
Despite Dogecoin’s strong position in the broader cryptocurrency market, its ETF product is trailing behind other altcoin ETFs. The large trading volumes of Bitcoin and Ether, compared to the relatively low volume of Dogecoin ETFs, indicate that investor interest in these ETFs is still heavily concentrated on the two largest cryptocurrencies.
The Growing Popularity of Altcoin ETFs
Altcoin ETFs, including those based on Solana, XRP, and even newer products like Chainlink and Litecoin, continue to show moderate success in the market. For example, Chainlink ETFs reached $3.1 million in TVT on December 8th, while Litecoin ETFs had $526,000 in trading volume. This shows that while Dogecoin ETFs lag behind, other altcoin ETFs are able to draw investor interest, even if their volume remains smaller than Bitcoin and Ether ETFs.
The steady rise in popularity for various altcoin ETFs demonstrates that investors are diversifying their portfolios within the regulated crypto ETF market. While Dogecoin may have initially seen significant hype, the broader trend shows that the market’s attention is now largely focused on Bitcoin and Ethereum-based products.
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