Investment firm 21Shares has launched an exchange-traded fund (ETF) based on the cryptocurrency Dogecoin (DOGE), which appeared on Wall Street this week, albeit with low trading volume.
The product, called the 21Shares Dogecoin ETF, trades on the Nasdaq exchange under the symbol TDOG. It aims to capture the interest of an investor base seeking direct exposure without technical complexity. said the company in a statement.
“TDOG will provide investors with secure and easy access to DOGE, holding assets in a 1:1 ratio under institutional-grade custody. “This structure aims to reduce operational risk for stock market participants who wish to interact with this cryptocurrency,” 21shares explains.
The launch was also made in collaboration with 21Shares and House of Doge, the corporate arm of the foundation that supports the Dogecoin ecosystem, the company said.. The legitimacy behind this product lies in the transaction potential that companies recognize in their assets..
“We believe Dogecoin captures the spirit of internet culture and continues to evolve within the digital economy. Dogecoin has helped introduce cryptocurrencies to many new users, and for many this will be their first step into the space,” he says.
Careful recruitment
The entry of a new Dogecoin ETF onto Wall Street will not occur in a non-competitive environment. This new fund came to market to compete with two other ETFs based on meme cryptocurrencies issued by Grayscale and Bitwise. According to a report by CriptoNoticias, these products will hit the market in 2025.
Despite this proliferation of products, initial interest is reflected in sales volume figures Suggests that operators adopt carefully wall street.
For TDOG, the total value of all transactions at debut was $44,780. This indicates that trading volume is low, and assets are Not much liquidity at the moment.
According to records at the time, the fund had no inflows or outflows of money from investors. Cumulative net flow also becomes zero, This suggests that the fund was very static during the first trading session.
When looking at the overall picture of these financial products, the numbers reveal that it is still a nascent market.
All told, the three ETFs were able to attract a combined net investment of just $6 million. Total assets under management is $10.5 millionwhich corresponds to only 0.05% of Dogecoin’s market capitalization.
The outlook is uncertain
It should be noted that there is clearly a concentration of capital within the Dogecoin ETF sector.
Grayscale Dogecoin Trust ETF (GDOG) is the undisputed leader, controlling 73% of the Dogecoin ETF market with $7.7 million in net assets. but, Even the leaders face participation challenges as the total trading volume is $191,000which is a very low number for the stock market.
This low activity reflects the fact that they are still very young products or are targeted at very specific users, with little participation from large investors so far. In this way, a multi-issuer environment is created that structurally ties Dogecoin to the institutional world. This does not imply a guarantee of short-term price increases.
meme coin price It fell 64% last year and remains flat at its current level of $0.12. On the day. Therefore, despite having the necessary infrastructure in place, these ETFs will only succeed if institutional investor interest translates into actual continued purchases.
(Tag translation) Altcoin
