DOGE ETF buzz crashes into a bearish reality with Dogecoin crashing to new annual lows this week, since it could not build on its recent exchange-traded products.
The token at $0.13 was disappointing despite fresh hope over revised filings by leading issuers and increased promotion of new spot funds.
Spot DOGE ETF efforts progress amid muted demand
The ETF story of Dogecoin gained some progress after 21Shares filed an amended S-1 with the US Securities and Exchange Commission on December 2. Its sponsor fee is going to be 0.50% on its proposed spot Dogecoin ETF, and the issuer said the fee would accrue on a daily basis and be paid out on a weekly basis in DOGE. The company claimed the fee had the prospective TDOG product in the middle of the existing range of costs of spot crypto funds.
The filing said that the trust might require the liquidation of DOGE to satisfy debts associated with taxes or litigation. It further established that administrative tasks would be managed by The Bank of New York Mellon, and joint custodians were Anchorage Digital Bank and BitGo.
On November 24, the Dogecoin ETF of the first spot by Grayscale started trading on NYSE Arca. The trading saw an amount of almost five billion coins traded in the first and second days, with an average of 1.7 billion coins being traded in the three days. There was another product called DOJE, which registered high turnover in September but has been unable to match the inflows of the XRP or Ethereum funds.
ETF is an indicator of insufficient DOGE interest.
According to the data provided by SoSoValue, Grayscale GDOG and Bitwise GWOW now have $6.92 million in aggregate assets and attracted $2.8 million in net inflows. On Tuesday, DOGE ETFs recorded an inflow of $513,000, and on Wednesday, it recorded an inflow of $177,000, but no flows were recorded on Thursday. Between November 27 and December 2, the two spot products had no new activity.
DOJE had $23.4 million of assets in the broader ETF arena, which also covers futures offerings. BWOW of Bitwise was trading at $24.36, having fallen -1.62% and having $2.4 million in assets with a 0.34% fee. GDOG was traded at $17.44 after it fell by 1.61%. The 21Shares TXXD futures-based product very recently traded at $22.26 and comprised $856,900 in assets with a fee of 1.89%.
On-chain strength vs. price weakness.
Dogecoin has been showing an upward trend in the week, with a slight recovery following a huge monthly loss of more than 22%. The recovery upsurged the price by almost 11% and made the levels stable around $0.1475. In November, the network had 71,589 active addresses, the highest number since September.
Analysts commented that increased activity could reflect better interests by investors who are buying the dip after a poor three-month performance. However, the institutional selling pressures prevailed over the positive signs. DOGE fell by $0.1522 to $0.1477 with heavy trading, with 830.7 million DOGE changing hands. The traders sold over 14.4 million coins in the session, thwarting every attempt to move upwards.
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