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    Dogecoin ETFs Experience Unprecedented Low Liquidity Amid Decline in Trading Activity

    Ethan CarterBy No Comments2 Mins Read
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    Demand for US spot Dogecoin exchange-traded funds (ETFs) appears to be waning, as total value traded (TVT) has dropped to its lowest level since inception.

    SoSoValue data indicated that Dogecoin ETFs’ TVT plummeted to $142,000 on Monday, marking the lowest point since their launch. This represents a significant decline from late November, when trading volume exceeded $3.23 million on some days.

    Total value traded signifies the cumulative dollar amount of ETF shares traded in a specified timeframe. It reflects market activity and liquidity, showcasing the money flow through these funds.

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    Daily spot ETF net inflows and total net assets. Source: SoSoValue

    In contrast, Dogecoin (DOGE) activity in the wider crypto market paints a different picture. CoinGecko data revealed that over the last 24 hours, DOGE achieved more than $1.1 billion in spot trading volume, with a market cap of $22.6 billion.

    This indicates that the underlying asset remains very liquid, though not through ETF channels. This discrepancy implies that traders are opting for direct access to DOGE on exchanges rather than utilizing conventional market instruments.

    Grayscale’s Dogecoin ETF launched in November but failed to meet initial volume forecasts. ETF analyst Eric Balchunas had predicted the ETFs would attract at least $12 million in volume, but the actual volume on the first day was only $1.4 million.

    Related: BlackRock files with SEC for listing of staked Ether ETF

    Bitcoin and Ether lead ETF trading while alt-ETFs fall behind

    On Dec. 8, ETF trading activities remained focused on Bitcoin (BTC) and Ether (ETH)-based products. As per SoSoValue, Bitcoin ETFs recorded $3.1 billion in TVT, while Ether ETFs posted $1.3 billion.

    Solana (SOL) ETFs attracted $22 million in value traded, and XRP products reached $21 million in trading volume. Further along, the newly launched Chainlink ETFs had a TVT of $3.1 million on the same day, while Canary’s Litecoin (LTC) ETF generated about $526,000.

    The data suggests that ETF capital continues to flow primarily towards the two largest digital assets, solidifying their status as the main liquidity centers for regulated crypto exchange-traded products.

    When it comes to inflows, XRP (XRP) remains robust. On Monday, XRP ETFs’ inflow streak continued unbroken since their launch. Conversely, Solana ETFs, which had their inflow streak interrupted in November, are now on a three-day inflow streak after witnessing $32 million in outflows on Wednesday.