The Dogecoin spot ETF (GDOG) debuted with no capital gains on its first day of trading.

Source: CritpoTendencia Original Title: The Dogecoin ETF (GDOG) did not receive inflows on its first day of trading. Original Link: After its historic debut on the stock exchange, Grayscale's spot ETF for Dogecoin (GDOG) did not receive any capital. Wall Street portfolios chose to stay away from this product that represents the most volatile part of the cryptocurrency market. The result was a final figure of zero inflows during its first day.

The Grayscale Dogecoin Trust ETF began trading on November 24 on the NYSE Arca. This fund is the conversion of the former Grayscale trust that was aimed exclusively at accredited investors. Its transition to a spot ETF opened the door to retail and institutional investors seeking direct exposure to the dog coin.

This product was expected to act as a stable channel of capital from Wall Street to the sector of so-called memecoins. However, the first day fell far short of those expectations. Still, it is premature to label the product as a disappointment: the actual response will depend on market behavior in the upcoming sessions.

The context in which the Dogecoin ETF goes public is one of the most delicate in recent years. The downward trend in the broad cryptocurrency market has become a strong deterrent for capital. Risk aversion remains high, even with the slight recovery recorded in recent hours.

Will the Dogecoin ETF recover in the short term?

Despite this lackluster start, it is reasonable to anticipate an improvement in the performance of the GDOG ETF as the days go by. Dogecoin is one of the most popular coins in the market, not only within the meme environment but across the entire crypto ecosystem. Proof of this is that the token currently occupies the number 9 position in the global ranking by market capitalization.

This implies that, once the crypto market manages to move past the current setback, it is likely that capital will flow into this fund. Nevertheless, its ability to attract institutional money should not be overestimated. It should not be overlooked that intense competition is approaching among new spot ETFs linked to various cryptocurrencies.

Dozens of similar products based on other altcoins are under review by the Securities and Exchange Commission (SEC). This implies that issuers will have to face fierce competition for a limited volume of available capital. In this environment, the chances of success for individual products may be substantially reduced.

According to updated data, the GDOG ETF for Dogecoin recorded a volume of $1.41 million in secondary trading on its first day. This figure fell well below the expectations of experts, who estimated at least $12 million on its inaugural day.