Dogecoin ETFs see $2 million in inflows during debut week, falling short of analyst expectations.

Dogecoin exchange-traded funds made a quiet entrance into the market, drawing limited interest from investors during their initial week, with total net inflows barely exceeding $2 million by Nov. 29. This lackluster performance starkly contrasts with the successful launches of XRP and Solana ETFs, which attracted significantly higher levels of investment in their first weeks.

Over the past week, Dogecoin saw a 10% surge in value, climbing to $0.15 as part of a broader recovery in the cryptocurrency market. Grayscale made a significant move by transforming its Dogecoin Trust into a spot ETF, trading under the symbol GDOG on the New York Stock Exchange on Nov. 24. This action was followed by Bitwise introducing its own ETF, BWOW, on Nov. 27, providing investors with regulated access to the popular meme cryptocurrency through traditional brokerage accounts.

On social media, analyst Ali Martinez shared essential price levels for Dogecoin on Nov. 29, identifying $0.08 as the support level and $0.20 as the resistance level. The cryptocurrency last tested the support level in summer 2023, dropping below $0.10 before surging to nearly $0.50 following the presidential election. Dogecoin approached the $0.20 resistance level in late October, dipped to $0.135, and then recovered to its current price.

The lukewarm response to Dogecoin ETFs has raised doubts about institutional interest in investment products related to meme coins. In comparison, XRP ETFs attracted a remarkable $243 million on their debut day, while Solana funds saw over $64 million in capital flows during their launch in late October, based on data from SoSoValue. Both products continued to receive strong inflows, accumulating more than $600 million each in their initial weeks.

Bitwise’s CEO, Hunter Horsley, defended the decision to launch the Dogecoin ETFs despite the subdued demand. He emphasized Dogecoin’s unique position in the cryptocurrency market, stating that despite being a simple coin based on a meme, it has managed to maintain its relevance and value for over a decade. Bloomberg ETF analyst Eric Balchunas had anticipated first-day volume of $11 million to $12 million for the Grayscale product, but actual trading only reached $1.4 million. The ETF also recorded zero net inflows upon its debut, a rare occurrence for newly introduced single-asset cryptocurrency products.

The evolving landscape of cryptocurrency investments continues to showcase the varied levels of interest and demand for different digital assets. As Dogecoin ETFs struggle to gain traction, the market remains dynamic and unpredictable, with investors closely monitoring price movements and institutional behaviors in this rapidly changing environment.