Dogecoin News Today: DOGE ETF's Underperformance Highlights Altcoin Capital Struggles

Grayscale's GDOG, the first U.S.-listed spot Dogecoin (DOGE) exchange-traded fund, underperformed expectations on its debut, trading just $1.41 million in volume on November 24, according to Bloomberg ETF analyst Eric Balchunas. This figure fell far below the $10–12 million forecast by industry observers, highlighting the challenges of attracting capital to altcoins beyond Bitcoin and Ethereum. Balchunas noted the muted result was "solid for an average launch but low for a 'first-ever spot' product," a sentiment echoed by market participants who observed that DOGE's broader market dynamics-trading at $0.1502, down 79% from its all-time high-limited enthusiasm according to market analysis.

The GDOG ETF, which converts Grayscale's existing Dogecoin trust into a regulated ETF structure, began trading on NYSE Arca with a zero-fee waiver for the first $1 billion in assets or three months. The product holds 11.1 million DOGE across 94,700 shares, with Coinbase Custody managing the underlying assets. However, its performance paled in comparison to recent altcoin ETF launches. Canary Capital's XRPC XRP ETF, for instance, generated $58 million in day-one trading, while Bitwise's Solana staking ETF hit $57 million in October. These figures underscore the uneven appeal of crypto ETFs, with Balchunas observing that "the further away you get from BTC, the less asset there will be".

The GDOG's underwhelming debut contrasts with the aggressive expansion of DOGE and XRP ETFs by other issuers. REX-Osprey's DOGE ETP launched in September, while Bitwise's BWOW ETF is poised to debut soon after receiving SEC approval. Grayscale's XRP counterpart, GXRP, also faced a lukewarm reception, collecting $67.4 million in net inflows compared to Canary's $243 million. These disparities reflect the fragmented regulatory landscape and varying investor appetites for altcoin exposure.

DOGE's market capitalization of $22.8 billion ranks it as the 10th largest cryptocurrency, yet its price has languished for months. Over the past seven days, the altcoin has declined more than 5%, mirroring a broader crypto market correction that began in October. Analysts attribute the weakness to DOGE's limited utility and structural supply challenges, including its unlimited annual coin issuance of 5 billion tokens. Despite the ETF's launch, the spot price remained stagnant near $0.146, with technical indicators suggesting sellers dominate above $0.1530.

Industry watchers remain cautious about DOGE's ETF-driven recovery. While the product offers regulated access to the meme coin, its impact on price has been negligible thus far. Bloomberg's Balchunas emphasized that institutional adoption of altcoins remains nascent, with DOGE's market cap and utility lagging behind more established cryptocurrencies. For GDOG to gain traction, analysts suggest the fund must demonstrate sustained inflows and catalyze broader market optimism-a hurdle given DOGE's history of volatility and speculative trading.