Bitwise Closes Dogecoin ETF Amid Lack of Demand

Bitwise has announced that it will be closing its Dogecoin ETF, citing the need to optimize its product range. The fund had approximately $722,000 in net assets as of September 8, backed by around 8.2 million DOGE. Despite being listed on the New York Stock Exchange's Arca platform with a 0.34% expense ratio, the fund failed to attract significant interest.

Over its 199 trading days, the three US Dogecoin funds recorded zero net flows on 166 of them, indicating that there was little to no buying or selling activity in the fund. This lack of demand is all the more surprising given Dogecoin's brand recognition and national television exposure.

In comparison, other crypto ETFs launched around the same time have seen much higher trading volumes. For example, Zcash products have done about $1.5 billion in cumulative trading volume, while Hyperliquid-linked products have reached $2.1 billion. This suggests that the problem with Bitwise's Dogecoin ETF was not access or regulatory hurdles, but rather a lack of demand for the underlying asset.