Grayscale's Dogecoin ETF moves $1.4 million on its first trading day and falls short of expectations.

Source: Yellow Original Title: Grayscale's Dogecoin ETF trades $1.4 million on its first day and misses forecasts

Original Link: Grayscale Investments launched its first spot ETF for Dogecoin, which recorded $1.4 million in trading volume during its debut on November 25 on NYSE Arca, falling short of analysts' expectations. The fund, which trades under the ticker GDOG, attracted less attention than recent cryptocurrency ETF launches, despite being the first regulated product tracking the meme-based digital asset.

A moderate debut

The trading records and company documents show that the ETF started with holdings of approximately 11 million DOGE and 94,700 shares outstanding. The assets under management amounted to 1.7 million dollars when it began operations.

The Bloomberg analyst, Eric Balchunas, had predicted a first-day volume of between 10 and 12 million dollars, a target that the fund did not reach.

Grayscale set a management fee of 0.35%, but waived it until the fund reaches $1 billion in assets or three months have passed, whichever comes first.

During this period, the fund will have an expense ratio of 0%. Balchunas pointed out on social media that, although the volume was <<solid for an average launch>>, it was still <<low for a 'spot product for the first time'>>.

Institutional Appetite

Recent altcoin ETF launches have attracted stronger initial demand, with XRP and Solana products recording faster capital inflows during their early sessions. This contrast suggests that institutional investors may prefer certain tokens over meme cryptocurrencies in regulated investment vehicles.

Traders interpret the modest volume as evidence that capital flows reflect specific preferences for certain tokens, rather than a general appetite for any new cryptocurrency ETF.

Market observers are closely watching whether the fee waiver will help the fund accumulate assets in the coming weeks. A Dogecoin ETF competing with Bitwise is expected to launch soon, which could alter investment flows. Analysts are monitoring the creation and redemption activity of shares to distinguish genuine institutional demand from mere initial trading interest.

Dogecoin was trading at around $0.15 when the ETF opened, showing a moderate price movement that indicated a more contained than enthusiastic market response.

The debut suggests that ETF quotes alone do not guarantee significant capital inflows, especially for assets without established patterns of institutional adoption.</low></solid>