Bitwise Axes Underperforming Dogecoin ETF Amid Sustained Demand Woes
Bitwise Investment Advisers has announced that it will be closing its Dogecoin ETF (NYSE: BWOW) in October, just a few months after trading began. The decision to discontinue the fund comes as no surprise given its poor performance and lackluster demand.
The fund had struggled to gain traction from the start, with only $721,815 in assets by September 8, and a cumulative net asset value return of -45.37% since inception. Trading activity was also dismal, with the fund never reaching its initial launch week volume of $3 million.
Despite the closure of BWOW, Bitwise's Hyperliquid ETF (BHYP) has seen significant success, with over $5 million in one-week inflows in August, according to Arkham. The contrast between the two funds highlights the challenges faced by smaller altcoins in attracting and retaining investor interest.
Bitwise attributed the decision to close BWOW to ongoing efforts to optimize its product range and meet evolving investor needs. The closure serves as a reminder that even with regulatory approval, securing sustained demand for a crypto fund can be a significant challenge.