Bitwise Liquidates Dogecoin ETF Amid Poor Performance

Bitwise Investment Advisers announced it would liquidate and close its spot Dogecoin (DOGE) ETF, the Bitwise Dogecoin ETF (BWOW), just under a year after listing on NYSE Arca in November.

The fund never managed to grow, with net assets totaling approximately $721,815 as of September 8, far short of the scale targets set at launch. BWOW held 8,195,053.02 DOGE tokens, valued at roughly $721,877.64, and had only 50,000 shares outstanding.

Liquidity was also a problem for the fund, with a 30-day median bid-ask spread of 0.61% on September 8. The single-day volume in its first week of trading reached around $3 million, but enthusiasm quickly faded.

Bitwise described the liquidation as part of product lineup optimization in response to shifting investor demand. However, it seems that BWOW's micro-scale and poor performance were significant factors in the decision. This move highlights the reality that single meme coin ETFs struggle to sustain operations when demand is insufficient.