Unveiling the mystery: Why did the Dogecoin (DOGE) ETF fail spectacularly?
Wall Street has unveiled an ETF for Dogecoin, the most famous meme coin, but so far, no one has crossed over. The debut of Grayscale's Dogecoin ETF (GDOG) on NYSE Arca on November 24 has not seen any net unit creation, indicating institutional appetite for meme cryptocurrencies in a regulated setting could be overestimated. With the industry gearing up to launch over a hundred similar products, the market is currently losing almost $2 billion a week.
Translated on November 26, 2025 at 11:59 by Simon Dumoulin
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A Catastrophic Launch That Reveals Market Flaws
The G DOGE ticker appeared active on screens, but the underlying infrastructure told a far less impressive story. According to SoSoValue, the fund recorded approximately $1.41 million in secondary trading volume, a paltry figure compared to forecasts. Eric Balchunas, Bloomberg Intelligence analyst, had estimated a $12 million volume for the first day, meaning the actual result missed the target by nearly 90%.
The real red flag comes from flow data: Zero net creation after the first day. In ETF market structure, this distinction is fundamental. Trading volume represents existing shares changing hands between market makers and speculators, while creations represent fresh capital actually entering the fund via Authorized Participants.
Source: SoSo Value
A day of zero creation means that no new institutional money entered the ecosystem despite regulatory approval. Traders simply played with existing units, practicing what the industry calls ticker tourism, without real capital commitment. This reality reveals a crisis of confidence for an asset class facing a massive oversupply problem.
Why GDOG Fails Where Other ETFs Succeed
The contrast with recent launches is stark: the Bitwise Solana Staking ETF (BSOL) attracted nearly $200 million in one week thanks to genuine utility offering staking yields difficult to access for traditional investors. Conversely, GDOG offers only basic exposure to social sentiment, with no yield or institutional advantage. Since Dogecoin is already easily accessible on all major platforms, GDOG’s value proposition becomes virtually nonexistent. Moreover, wrapping a meme coin introduces structural risks, including high sensitivity to market movements and Elon Musk’s tweets.
This flop is not isolated: it illustrates a concerning “spaghetti cannon” strategy, where issuers launch ETFs en masse to see which ones will survive. The pipeline anticipates five spot crypto ETFs in six days, followed by over 100 new ETFs within six months. In a context where crypto investment products are already recording $1.94 billion in net outflows. Meanwhile, the market capitulates: Bitcoin plunges toward $80,553 and Solana suffers massive withdrawals. Launching a high volatility product in this climate is risky; launching a hundred borders on systemic danger.
If an asset as culturally dominant as Dogecoin doesn’t attract institutional inflows, prospects for the long tail of single token ETFs look grim. The market risks becoming saturated with zombie ETFs with low AUM, complicating the work of market makers, widening spreads and increasing tracking errors. Excessive liquidity fragmentation could thus create a genuine operational nightmare during the next periods of crypto volatility.
Passionate about cryptocurrencies since 2019, I cover the latest news through clear and accessible articles. My goal is to make crypto understandable for everyone, with reliable and well-researched content.
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