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Dogecoin ETFs Struggle to Attract Demand Due to Reputational Risks
Dogecoin's attempt to enter the institutional ETF market is facing challenges due to low demand from institutions. Bloomberg Intelligence ETF analyst James Seyffart noted that spot Dogecoin ETFs have attracted “near zero” interest, citing concerns about reputational risk among financial advisers.
- The crypto ETF sector is crowded with over 150 filings, including diverse structures such as spot, derivatives, and multi-asset products. However, volume does not ensure demand.
- Seyffart highlighted Dogecoin as an example of a product that has not resonated with investors, noting almost no interest in Dogecoin ETFs.
- The marginal buyer of Dogecoin likely prefers direct purchases rather than through an ETF.
- Bitwise's Dogecoin ETF (ticker BWOW) launched recently and holds under a million in assets, indicating minimal demand.
Geraci emphasized that typical Dogecoin buyers already have digital wallets and don’t need an ETF for access. Additionally, financial advisers may avoid recommending Dogecoin ETFs due to potential reputational risks on client statements.
- Seyffart expressed interest in basket and index-style crypto ETFs, which offer diversified exposure without needing to select individual tokens.
- Advisers prefer these broader products to avoid having to defend specific token choices to clients.
- Niche infrastructure plays like Chainlink are viewed as more appealing compared to meme assets like Dogecoin.
As of the latest data, Dogecoin traded at $0.12479.
