Grayscale’s Spot Dogecoin ETF Launches with Low Volume, Raising Market Liquidity Concerns

Quick breakdown:

• Grayscale launched America’s first spot Dogecoin ETF, but its debut trading volume fell significantly short of expert forecasts, coming in at just $1.4 million instead of the expected $12 million. 
• This cautious start comes as the U.S. market sees a surge in spot crypto ETFs, including multiple new XRP and Dogecoin products. 
• The launch highlights evolving investor appetite for meme coin ETFs with direct token holdings, but raises concerns about liquidity and the long-term market impact.

 

Low debut volume highlights investor caution

Grayscale’s spot Dogecoin ETF (GDOG) kicked off with about $1.4 million in first-day trading volume, far below the $12 million that Bloomberg’s Eric Balchunas had projected . While the debut was respectable for a typical ETF launch, it didn’t match the excitement one might expect for the first spot fund to track Dogecoin directly. The softer-than-expected volume suggests investors are still cautious, even with the buzz around the nation’s first spot DOGE product, reflecting a more measured appetite for high-volatility meme-coin ETFs amid a wave of new crypto fund offerings.  

$GDOG (first Doge ETF) saw $1.4m volume on Day One.. solid for an avg launch but low for a ‘first-ever spot’ product. Not too surprising tho, we actually made a rhyme a while ago predicting this: ‘The further away you get from BTC, the less asset there will be.’ pic.twitter.com/ermlOcID1J

— Eric Balchunas (@EricBalchunas) November 25, 2025

Spot ETFs hold direct Dogecoin, differentiating from earlier products

Grayscale’s ETF stands apart from earlier offerings like the REX Osprey DOGE ETF (DOJE), which saw $17 million in trading volume on its first day but can’t actually hold Dogecoin itself; it gets exposure through offshore subsidiaries instead. Grayscale’s and Bitwise’s spot ETFs, filed under the Securities Act of 1933, are allowed to hold DOGE directly, though the approval process takes longer. This ability to take direct custody makes the new ETFs more appealing to investors who want clean, straightforward exposure without extra layers, and it adds another layer of legitimacy to DOGE within the broader crypto market.

Rising wave of Crypto ETFs amid regulatory easing

The debut of GDOG coincides with an influx of new crypto ETFs following the SEC’s September easing of listing standards. Bitwise has filed for a spot Dogecoin ETF, set to launch soon, and two new XRP spot ETFs attracted nearly $130 million in inflows on their first day. The evolving ETF landscape reflects growing institutional and retail interest in crypto exposure, balanced by concerns about liquidity in single-token funds. As more than 100 crypto ETFs are expected to launch in the next six months, market watchers anticipate considerable shifts in capital flows and trading dynamics.

Notably, the Grayscale Zcash Trust (ZCSH), which provides indirect exposure to the privacy coin Zcash (ZEC), has recorded substantial recent gains. This performance signals renewed investor interest in privacy-focused assets, likely due to increased global surveillance and regulation. Zcash uses zero-knowledge proofs to verify transactions while keeping details private. While the Trust offers a regulated entry point, investors should consider its 2.5% annual expense ratio and its reliance on secondary-market liquidity.