CoinDesk reported on September 14 that the long-anticipated Dogecoin exchange-traded funds have suffered a serious shortfall of inflows since their simultaneous launch in the United States and Hong Kong in early September. In the first week of trading, net inflows into Dogecoin ETFs totaled less than $120 million, far below the $500 million threshold that industry analysts had expected before launch. In sharp contrast, the XRP and Solana ETFs launched at the same time together pulled in more than $3 billion in their first month, with the XRP funds alone attracting more than $1.7 billion and the Solana funds about $1.3 billion. The cold start for Dogecoin ETFs reflects that, in the eyes of professional institutional investors, Dogecoin is still regarded as a “retail-driven” token, and its long-term value-store capability and institutional-money compatibility are being fundamentally questioned. The incident has also led the market to revisit the product-design logic of crypto ETFs, token-selection criteria and institutional-money flow trends.

Event Details

First-week inflows into Dogecoin ETFs severely short. According to data compiled by CoinDesk from disclosures by several U.S. and Hong Kong asset managers, since Dogecoin ETFs were simultaneously listed on the New York Stock Exchange and the Hong Kong Stock Exchange on September 3, cumulative net inflows as of September 14 totaled approximately $115 million, far below the $500 million threshold that industry analysts had expected before launch. Among them, the largest single product, the Grayscale Dogecoin Trust ETF, attracted approximately $78 million, while Dogecoin ETF products issued by several smaller asset managers generally saw net outflows. On the Hong Kong side, the two Dogecoin ETFs jointly issued by China Asset Management and Bosera Asset Management together attracted approximately $15 million, showing a clear “retail-dominated, institutionally cold” profile.

XRP and Solana ETFs together pull in more than $3 billion in their first month. In sharp contrast to the Dogecoin ETFs, the XRP and Solana ETFs launched at the same time together pulled in more than $3 billion in their first month. Among them, the Bitwise XRP ETF alone attracted more than $1.7 billion in its first month, making it one of the crypto ETFs with the largest first-month inflow scale so far in 2026. The Franklin Templeton Solana ETF, the VanEck Solana ETF and Solana ETFs issued by several other institutions together attracted about $1.3 billion. Several flagship products have already broken through the historical pattern of “delisting soon after launch” and have entered a state of stable net inflows.

Fundamental institutional skepticism toward Dogecoin. Multiple analysts at international investment banks that monitor crypto-ETF fund flows noted that the cold start of Dogecoin ETFs in the first week is not a simple product-pricing or marketing issue, but rather a fundamental institutional skepticism about the underlying asset. Several institutional asset-allocation heads made clear that Dogecoin’s origins as a “joke token,” its lack of a clear core development team and roadmap, and the absence of an independent value-capture mechanism make it difficult to pass the strict institutional investment due-diligence and risk-assessment processes. Even if Dogecoin ETFs have reached institutional-grade standards in product structure, compliance framework and custody arrangements, institutional capital still has difficulty flowing into such an underlying asset at scale. Several analysts described the Dogecoin ETF cold start as a “sobering signal for the crypto ETF market.”

Reflection on product-design logic and token-selection criteria. The cold start of Dogecoin ETFs has also prompted several crypto-ETF issuers to revisit product-design logic and token-selection criteria. Several product heads at ETF issuers pointed out that future token selection for crypto ETFs will place greater emphasis on “institutional compatibility” metrics, including the quality of the token’s core development team, clarity of roadmap, on-chain transaction activity, regulatory and compliance clarity, and maturity of institutional custody solutions. Although Dogecoin has seen price appreciation in recent years riding on social-media attention and retail-market enthusiasm, its shortcomings on institutional-compatibility metrics make it difficult to become a preferred allocation target for institutional capital. Over the next 12 months, multiple asset managers are expected to withdraw or downsize their Dogecoin ETF product issuance.

Multiple factors behind XRP and Solana ETF success. In contrast to Dogecoin ETFs, the first-month inflows into XRP and Solana ETFs reflect the success of a combination of multiple factors. On the regulatory side, XRP has secured a key victory in its multi-year legal dispute with the U.S. Securities and Exchange Commission, and the controversy over its securities status has largely been resolved, giving its ETF products higher certainty in the compliance framework. Solana, meanwhile, has over the past two years gradually built institutional recognition as a “representative high-performance public chain” through continuous technology upgrades, ecosystem expansion and the development of institutional partnerships. On the product-design side, XRP and Solana ETFs have generally adopted lower fee structures, stronger liquidity support and a richer derivatives suite, enhancing their appeal to institutional capital.

Long-term impact on the crypto ETF market landscape. The stark contrast between the Dogecoin ETF cold start and the success of XRP and Solana ETFs will have a profound impact on the crypto ETF market landscape over the next 12 to 18 months. Institutional-capital “top-of-the-pile aggregation” is expected to strengthen further, with ETFs on a small number of tokens with clear institutional compatibility (including Bitcoin, Ethereum, XRP, Solana, Cardano, etc.) continuing to absorb the bulk of institutional inflows, while ETF products on more “retail-driven” or “meme-driven” tokens will continue to face the dilemma of insufficient inflows. This trend will also push crypto-ETF issuers to invest more resources in product initiation, token screening and compliance review, further raising the institutionalization and professionalization of the entire crypto-ETF market.

Knock-on effects on the Dogecoin ecosystem. The Dogecoin ETF cold start will also have knock-on effects on multiple layers of the Dogecoin ecosystem. At the trading level, insufficient institutional inflows may further widen bid-ask spreads in the Dogecoin ETF secondary market, adversely affecting actual transaction costs for retail investors. At the payments-scenario level, the “tipping culture” and “meme culture” usage scenarios on which Dogecoin has long relied face the dual pressures of increased regulatory scrutiny and declining institutional trust, and several merchants that previously accepted Dogecoin payments may reassess their crypto-payment strategies. At the community level, the Dogecoin core community’s reflection on the “institutional path” and adherence to the “retail-driven” tradition will be one of the central topics in Dogecoin ecosystem governance discussions over the coming period.

Global Perspective

The stark contrast between the Dogecoin ETF cold start and the combined $3 billion inflow into XRP and Solana ETFs is one of the most iconic events in the global crypto-ETF market in 2026. It reflects not just the success or failure of a single product or token, but the fundamental institutional-capital screening logic for crypto-asset “institutional compatibility,” and will have profound implications for crypto-ETF product design, token-valuation frameworks and regulatory-policy direction.

Institutional capital’s “institutional compatibility screen” is reshaping crypto-valuation frameworks. In recent years, crypto valuation has relied more on non-traditional financial indicators such as “community consensus,” “meme effect” and “narrative tension.” Entering 2026, with institutional capital flooding into the crypto-ETF market on a large scale, valuation logic is undergoing a fundamental restructuring. The metrics that institutional investors care more about include the quality of the underlying token’s core development team, clarity of roadmap, sustainability of technical architecture, on-chain transaction activity, regulatory and compliance clarity, and the maturity of institutional custody solutions. Dogecoin’s clear shortcomings on these “institutional compatibility” metrics make it difficult to be a preferred allocation for institutional capital. This restructuring of valuation logic will fundamentally change the “token hierarchy” and “money distribution” within the crypto market.

The living space for “retail-driven” tokens faces structural compression. The Dogecoin ETF cold start marks the structural dilemma of “retail-driven” or “meme-driven” tokens in the institutionalization process. Although Dogecoin has achieved significant price appreciation over the past few years riding on social-media attention, celebrity endorsements and retail-market enthusiasm, its very nature as a “retail-driven” token has destined it to face structural squeeze as institutional capital floods into the crypto-ETF market on a large scale. Over the next 12 to 24 months, more tokens with similar positioning are expected to face similar institutional-compatibility challenges. Some may seek transformation through technology upgrades, ecosystem building and compliance-path optimization, while others may continue to rely on the retail market and traditional community support to survive. This process will make the token structure of the entire crypto market clearer, with a clearer divide between “institution-friendly” tokens and “community-driven” tokens.

Regulatory clarity becomes the key variable for crypto-ETF success. The success of XRP ETFs owes much to its key victory in its multi-year legal dispute with the U.S. SEC, which has largely clarified the controversy over its securities status. By contrast, Dogecoin, although long regarded by regulators as a commodity-status token, continues to face ongoing scrutiny on multiple regulatory dimensions including anti-money laundering, counter-terrorist financing and investor protection. Regulatory clarity has become one of the key variables for crypto-ETF success. Over the next 12 to 18 months, multiple asset managers are expected to continue rolling out new products around tokens with clearer regulatory posture (including Bitcoin spot ETFs, Ethereum spot ETFs, XRP ETFs, Solana ETFs, etc., where regulatory stance has become clearer), while the ETF listing process for tokens whose regulatory posture remains unclear will slow significantly.

The “top-of-the-pile aggregation” of the crypto-ETF market will further intensify. The stark contrast between the Dogecoin ETF cold start and the combined $3 billion inflow into XRP and Solana ETFs signals that the “top-of-the-pile aggregation” of the crypto-ETF market will further intensify. Institutional capital’s “winner-takes-all” character will become more pronounced, with ETFs on a small number of tokens with clear institutional compatibility continuing to absorb the bulk of institutional inflows, while ETF products on more tokens lacking clear institutional compatibility will continue to face the dilemma of insufficient inflows. This trend will also push crypto-ETF issuers to invest more resources in product initiation, token screening and compliance review, further raising the institutionalization and professionalization of the entire crypto-ETF market.

Fee competition in crypto ETFs will enter a new “zero-fee” phase. The success of XRP and Solana ETFs is partly attributable to their significantly lower fee structures compared to traditional crypto ETFs, with several flagship products having already compressed management fees to the 0.15%-0.25% range, and some newly issued products even launching “zero-fee for the first 6 months” promotions. Over the next 12 to 18 months, fee competition in the crypto-ETF market is expected to enter a new “zero-fee” phase. Some flagship asset managers will absorb fee pressure through scale effects, derivatives packages and institutional services, while small and medium asset managers may be forced out of the market under fee competition. This process will further reshape the competitive landscape of the crypto-ETF market.

The boundary between traditional finance and crypto markets is blurring fast. The Dogecoin ETF cold start and the combined $3 billion inflow into XRP and Solana ETFs reflect that the boundary between traditional finance and the crypto market is blurring fast. On the one hand, traditional financial institutions (including BlackRock, Franklin Templeton, Invesco, VanEck, etc.) are entering the crypto-ETF market on a large scale. On the other hand, crypto-native asset managers (including Grayscale, Bitwise, 21Shares, etc.) are also accelerating cooperation, M&A and integration with traditional financial institutions. Over the next 12 to 24 months, traditional finance and the crypto market are expected to see deeper integration across product innovation, regulatory coordination and institutional services, and the institutionalization, professionalization and compliance level of the entire crypto market will continue to rise.

Comparison of Multiple Perspectives

The Dogecoin core community and early supporters have shown clear “emotional opposition” to the Dogecoin ETF cold start. Some core community members argue that Dogecoin’s original intent was “community-driven” and “tipping culture,” that institutional capital’s cold reaction was “expected,” and that it in fact validates Dogecoin’s purity as an “independent community asset.” Another segment of the community has expressed concern about the cold institutional reaction, arguing that insufficient institutional inflows could negatively affect Dogecoin’s long-term price support and ecosystem development, and calling on the core development team to take a more proactive stance on roadmap, governance and institutional cooperation.

Product heads at large asset managers generally believe that the Dogecoin ETF cold start is an inevitable result of the crypto-ETF market maturing. Several heads noted that the success of some products in the crypto-ETF market in recent years (such as Bitcoin spot ETFs and Ethereum spot ETFs) has led institutional investors to establish relatively clear “token-screening criteria,” and that tokens lacking clear institutional compatibility find it difficult to pass institutional due diligence. The Dogecoin ETF cold start will push the entire industry to more rationally evaluate product initiation and token-selection criteria, with more resources in the future being devoted to ETF products on tokens with clear institutional compatibility.

Core XRP and Solana camp supporters have expressed clear optimism about the success of their own ETFs. Several XRP supporters noted that XRP’s victory in its multi-year legal dispute with the U.S. SEC has already earned it “regulatory certainty” from institutional investors, and that XRP’s future expansion across multiple application scenarios including cross-border payments, stablecoins and central-bank digital-currency infrastructure will further unlock its potential value. Several Solana supporters noted that Solana has, over the past two years, built institutional recognition as a “representative high-performance public chain” through technology upgrades and ecosystem expansion, and that future development space across DeFi, NFTs, Web3 applications and institutional-grade blockchain services will further open up.

The U.S. Securities and Exchange Commission and multiple international regulators continue to maintain cautious attention on the rapid development of the crypto-ETF market. Multiple regulatory officials noted that while the large-scale inflow of institutional capital into the crypto-ETF market provides investors with more convenient exposure to crypto assets, it also brings new risk points including underlying-token price volatility, liquidity risk, custody risk and regulatory arbitrage. Regulators will continue to strengthen the review of crypto-ETF products to ensure that product structure, disclosure standards and risk disclosure reach levels comparable to traditional financial products. At the same time, regulators will continue to push for international coordination of the crypto-ETF market to avoid regulatory arbitrage and cross-border risk transmission.

Crypto-native investment institutions and hedge funds have shown clear “differentiation” in their reactions to the Dogecoin ETF cold start. Some institutions believe that the cold start of Dogecoin ETFs reflects “excessive pickiness” by institutional capital on crypto assets and may lead to mispricing of some tokens with long-term potential but short-term lack of institutional compatibility. Other institutions believe that institutional capital’s pickiness will push the entire crypto market in a more rational and mature direction and is beneficial to market health in the long run. Several institutional investment-strategy heads said they will continue to build portfolios around tokens with clear institutional compatibility and maintain a high level of caution on “retail-driven” tokens.

Academia and policy-research institutions have conducted multi-dimensional analyses of the rapid development of the crypto-ETF market. Several scholars noted that the rapid development of the crypto-ETF market reflects a significant increase in traditional financial-system acceptance of crypto assets, but also brings new regulatory challenges and systemic-risk concerns. They recommend that, while promoting the development of the crypto-ETF market, regulators strengthen compliance review of underlying tokens, standardization of custody solutions and the building of cross-border regulatory-coordination mechanisms. Several policy-research heads noted that the development of the crypto-ETF market also needs deeper coordination with the traditional financial regulatory framework to avoid regulatory gaps or overlaps.

Edited by: GoodInfo Global News Desk

US asset manager Bitwise has announced the closure of its Dogecoin exchange-traded fund BWOW launched in November 2025. The fund recorded approximately USD 3 million in single-day trading volume at launch and was seen as one of the landmark events for memecoins entering traditional financial channels. However, BWOW’s trading activity never sustained itself, market attention gradually declined, and the asset manager ultimately decided to initiate the fund liquidation and delisting process.

Bitwise stated that the closure of the fund is based on a comprehensive assessment of current market demand, operating costs and long-term sustainability, and does not represent an overall repositioning of the company on memecoins or the broader crypto asset business. Multiple market observers noted that this case suggests that demand for memecoin ETF products is highly sensitive to crypto cycles and community heat, and that the long-term performance of related products still carries considerable uncertainty.

Editor: GoodInfo Global News Desk