Dogecoin ETFs See 95% Volume Drop as Analyst Reaffirms Bold $1 Target for 2026

Quick overview

Dogecoin ETFs have been a tough sell for institutions lately. Trading activity has been tanking across the major issuers, with some not seeing a single dollar flow in – that’s according to SoSoValue. Between December 7 and 9, the Bitwise and Grayscale Dogecoin ETFs were dead in the water – not a single trade made it in, and combined, the trading volume was a paltry $159,000. This is a major slide from where things were just a few weeks earlier, when trading on these ETFs was running at around $3.2 million per week.

But while the ETFs are struggling, Dogecoin itself is still kicking. In the past 24 hours, DOGE traded for over $1.09 billion, and the market cap is sitting pretty at $23.5 billion. Market analysts note that most traders appear to be buying and selling directly on exchanges rather than through ETFs, especially given DOGE’s reputation as a high-risk bet.

Why Institutions are Shying Away from ETFs

• Institutions tend to go for assets they can get a good sense of beforehand, you know, something with dependable fundamentals.
• DOGE’s volatility is scaring off a lot of traditional portfolio managers – they can’t abide by that much uncertainty.
• And to top it off, centralized exchanges offer much more liquidity than ETFs, so some traders are skipping ETFs altogether.

This is like what’s been going on with the Litecoin ETF, which recently went 9 days without a single trade.

New DOGE Funds Show Some Life

Not every Dogecoin investment product is struggling, though. The REX Osprey DOGE fund, which launched in September, got a lot of attention from the start, racking up almost $6 million in trading volume in its first hour, which is impressive considering the competition from Bitwise and Grayscale at launch. The fund now manages around $23.6 million in assets, indicating that there is still significant interest from the retail crowd.

In contrast, the Grayscale Dogecoin Trust had a bit of a dud of a launch in November. After projecting $12 million in first-day trading, they raised only $1.4 million, suggesting less institutional interest than expected.

Analyst Sticks with $1 DOGE Prediction

Crypto Analyst Trader Tardigrade has gone on the record again, saying he thinks DOGE will hit $1 by 2026 – citing that it has held support at a key level and that more ETFs are popping up. Also helping boost sentiment is that 21Shares has filed with the SEC to list its Dogecoin ETF (TDOG) on Nasdaq this month.

Then, of course, there’s the fact that the Franklin Crypto Index ETF has added Dogecoin to its portfolio, thanks in part to new Cboe rules that make it easier for fund managers to buy in. Meanwhile, though, other digital assets are still getting all the attention: XRP ETFs added $16.4 million in inflows, and Solana ETFs added $11 million in the latest trading session.

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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