Dogecoin News Today: Institutional Shift: Dogecoin ETF Loses Luster as Ethereum L2 Gains

The recent launch of the REX-Osprey DOGE ETF, the first U.S. spot exchange-traded fund for Dogecoin, initially sparked optimism in the cryptocurrency market, according to a TradingView report. However, the buzz around the asset appears to be fading as investors pivot their focus to Ethereum's Layer 2 (L2) ecosystem and emerging meme coin projects. This shift highlights broader market dynamics where speculative interest in altcoins like Dogecoin is being outpaced by institutional confidence in Bitcoin and Ethereum-based innovations.

The REX-Osprey DOGE ETF, which debuted on September 18, 2025, offered institutional investors direct exposure to Dogecoin (DOGEUSD) and was seen as a catalyst for the coin's price action, the TradingView report noted. Analysts observed that DOGE would need to reclaim the $0.20–$0.21 trendline to target a $0.25 price level, though failure to do so could push the coin below $0.19. Despite these technical hurdles, the Dogecoin Foundation emphasized potential tailwinds, including Treasury purchases, real-world adoption, and a public listing for traditional brokerage access, but these factors have yet to translate into sustained investor enthusiasm.

Meanwhile, Bitcoin ETFs are surging with inflows, outpacing altcoin counterparts. On October 25, Bitcoin ETFs recorded $90.6 million in net inflows, with cumulative totals reaching $61.98 billion, according to a Coinotag report. This momentum contrasts sharply with Ethereum ETFs, which faced $93.6 million in net outflows, led by BlackRock's fund. Ethereum's price struggles below $4,000 have exacerbated investor caution, particularly as the SEC delays approvals for Cardano and XRP ETFs due to the U.S. government shutdown, a point highlighted in the Coinotag report. Analysts attribute the divergence to Bitcoin's perceived resilience as a store of value amid economic uncertainty.

The waning interest in Dogecoin aligns with broader trends in crypto ETF performance. While Bitcoin's rebound post-crash has reinforced its dominance, Ethereum's Layer 2 solutions—such as optimistic rollups and zero-knowledge proofs—are gaining traction as scalable alternatives to the mainnet. This has drawn attention to L2-based projects, including meme coins built on Ethereum's infrastructure, which offer lower fees and faster transactions. Investors are increasingly allocating capital to these ecosystems, signaling a strategic shift away from Dogecoin's speculative narrative, as noted in the Coinotag report.

The regulatory landscape further complicates Dogecoin's trajectory. With the SEC's delayed decisions on altcoin ETFs, market participants are favoring assets with clearer regulatory pathways. Bitcoin's ETF success underscores the importance of institutional adoption, while Ethereum's technical upgrades position it as a more versatile platform for innovation, according to the Coinotag report.