DOGE Funds Lose Steam While Long-Term Bull Case Remains
Dogecoin-linked investment products are entering a period of steep slowdown, even as the underlying cryptocurrency continues to generate massive trading activity across exchanges.
Recent figures show that ETF demand has thinned out dramatically — yet some market analysts insist that DOGE remains on track for a major rally in the next cycle.
ETF Demand Cools Despite High On-Chain Activity
Interest in institutional Dogecoin products has dwindled in early December. Data providers report that major issuers – including Bitwise and Grayscale – saw no inflows for several consecutive days, signalling a sharp drop in appetite from fund managers.
During the same period, trading volumes across all DOGE ETFs fell to roughly $159,000, a drastic decline from last month’s highs above $3.2 million.
The slowdown stands in contrast to Dogecoin’s spot market behavior. Retail traders remain heavily engaged, pushing 24-hour trading activity to more than $1 billion, while the token’s market capitalization stays firm at nearly $23.5 billion.
Industry commentators say institutional hesitation stems from two issues:
- Speculative assets like DOGE lack traditional valuation anchors, making them harder to justify in conservative portfolios.
- Many traders prefer the liquidity and leverage available on centralized exchanges rather than ETF wrappers.
Similar patterns have appeared in other meme-asset products, such as Litecoin ETFs, which have gone nine days without fresh inflows.
One Fund Breaks the Trend
Not every Dogecoin product is struggling. The REX Osprey DOJE fund saw a strong market debut in September, generating nearly $6 million in its first hour — outperforming both Grayscale and Bitwise launches. The Osprey product has since accumulated around $23.6 million in AUM, establishing itself as the most active DOGE-related vehicle.
By comparison, Grayscale’s Dogecoin Trust opened with a faint reaction. Analysts expected $12 million on day one; it managed just $1.4 million, underscoring the inconsistent institutional appetite for the asset.
Analyst Repeats Bold $1 Forecast for 2026
Despite the lukewarm ETF performance, bullish predictions for Dogecoin persist.
Well-known analyst Trader Tardigrade reiterated his call for DOGE to hit $1 in 2026, emphasizing the coin’s resilience at key long-term support zones. According to him, the broader trend structure still favors a major upside move in the next market cycle.
His renewed confidence comes as new DOGE products continue rolling toward the market:
- 21Shares has amended its SEC filing for its upcoming Dogecoin ETF, which will trade on Nasdaq under the ticker TDOG.
- Franklin Crypto Index ETF recently added DOGE to its portfolio following updated Cboe guidelines allowing more diverse crypto exposure.
READMORE: Why Bitcoin’s Next Move May Come From Central Banks
Institutional Flow Still Favors Other Altcoins
While DOGE funds remain quiet, the broader altcoin ETF landscape is seeing movement.
U.S. XRP products recorded $16.4 million in fresh inflows on Thursday, and Solana ETFs added another $11 million, highlighting a clear divergence in institutional interest across the market.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
