First US Dogecoin ETF Debuts! Bloomberg Analyst: 5 Crypto ETFs to Launch in the Next 6 Days

Bloomberg senior ETF analyst Eric Balchunas, known in the market as the “ETF Oracle,” stated that the first US spot Dogecoin ETF has officially been launched by Grayscale, with the ticker GDOG. He also pointed out that within the next 6 days, 5 spot crypto ETFs will be launching in succession, and over the next six months, more than 100 spot or derivative crypto ETFs are expected to be continually introduced to the market.

Grayscale GDOG Global Debut and Free Asset Gathering Strategy

(Source: Eric Balchunas)

The first US spot Dogecoin ETF was launched today by Grayscale, ticker $GDOG (which sounds a lot like that one-hit-wonder rapper from the late '80s). The management fee is 35 basis points (0.35%), but the first $1 billion in inflows or the first 3 months of inflows are completely fee-free. Eric Balchunas wrote: “Place your bets on day-one trading volume, I’m guessing $12 million.”

This free strategy is highly attractive in the ETF industry. A 0.35% management fee is mid-range among crypto ETFs, but waiving fees on the first $1 billion or first 3 months significantly lowers early investors’ costs. The purpose of this pricing strategy is to quickly accumulate assets under management (AUM), as ETF profitability is directly related to AUM. Once enough capital is attracted and liquidity is established, investors are more likely to hold even after the promotional period ends, rather than switch to other products.

Grayscale has a first-mover advantage and extensive experience in the crypto ETF space. The company was one of the earliest to launch a Bitcoin trust product, with its GBTC being the largest Bitcoin investment vehicle before being converted to a spot Bitcoin ETF. This experience and brand recognition give Grayscale a natural edge when launching new products. The launch of GDOG marks Grayscale’s expansion of its product line beyond Bitcoin and Ethereum to other major cryptocurrencies.

Dogecoin being the first meme coin to receive a spot ETF is symbolic in itself. Dogecoin started as a joke but has now become a top-10 cryptocurrency by market cap, with a huge community and celebrity backing (especially Elon Musk). The launch of a spot ETF provides institutional and traditional investors with a compliant channel to invest in Dogecoin, without the need to directly purchase or custody the cryptocurrency, which could drive new demand for Dogecoin.

Bitwise BWOW Launches in Two Days, ETF Issuer Competition Heats Up

(Source: Bloomberg Intelligence)

However, $GDOG can only enjoy the market alone for two days, as Bitwise’s $BWOW is expected to list on Wednesday. Eric Balchunas wrote: “I love that different issuers now get to have their own ‘global debut’ moments for different tokens, giving everyone a chance to shine. So many issuers have worked hard to bring the industry to this point, especially Grayscale.”

This rapid-follow model has already been validated in the launches of spot Bitcoin and Ethereum ETFs. When the SEC approves a class of spot crypto ETFs, it tends to approve multiple issuers’ products at once or soon after. This approach is intended to foster market competition, prevent monopolies, and ultimately benefit investors with lower fees and better service.

Bitwise is another key player in the crypto ETF sector, known for its low fees and professional management. The ticker BWOW is also creative (a play on a dog’s bark), showing ETF issuers are trying to add fun and memorability to their meme coin products. Such naming strategies help spread the product on social media, especially for assets like Dogecoin, which have a strong community culture.

Competition among ETF issuers will center on several factors: management fees, liquidity, tracking error, and brand trust. Grayscale holds a favorable position with its first-mover advantage and brand recognition, but Bitwise may attract investors with lower fees or more innovative product structures. This competition will ultimately drive the maturity and development of the entire crypto ETF market.

5 ETFs to Launch in 6 Days, Crypto ETFs Entering Boom Phase

Eric Balchunas also noted in another post that within the next 6 days, 5 spot crypto ETFs will launch in succession. Although he didn’t specify the exact names and tokens of these 5 ETFs, based on currently known filings and approvals, they may include spot ETFs for major tokens like Solana, XRP, and Litecoin.

Such an intensive product launch pace is extremely rare in ETF industry history. Traditional ETFs usually take months or even years to go from application to approval, but crypto ETFs, under the more crypto-friendly regulatory environment since the Trump administration, have seen much faster approval speeds. The SEC’s attitude toward cryptocurrencies has shifted from skepticism and restriction to openness and encouragement, creating an unprecedented opportunity window for ETF issuers.

Six-Month Crypto ETF Boom Forecast

Spot ETFs: Major L1 tokens like Solana, Avalanche, Polkadot, Cardano, XRP

Derivative ETFs: Leveraged ETFs (2x, 3x long), Inverse ETFs (short tools)

Thematic ETFs: DeFi baskets, NFT-related, Layer-2 themes, privacy coins, etc.

It is expected that in the next 6 months, over 100 spot or derivative crypto ETFs will be continually supplied to the market, covering major tokens such as Solana, Avalanche, Polkadot, and potentially even leveraged and inverse products. While 100 may sound like a lot, considering the diversity of the crypto market and the possible combinations of ETF products, it is not impossible.

The introduction of leveraged and inverse ETFs will add new dimensions to the market. Leveraged ETFs allow investors to magnify returns (and risks) by 2x or 3x, while inverse ETFs provide shorting tools, enabling investors to hedge risks or bet on declines without directly short selling or using derivatives. These products will further diversify and professionalize crypto investment strategies.

Profound Impact of the Crypto ETF Boom on the Market

Eric Balchunas wrote: “In the next 6 days, 5 spot crypto ETFs will be launched in succession. We don’t have the exact number after that, but expect steady supply (very likely over 100 in the next 6 months).” This forecast is based on his deep understanding of the ETF industry and keen insight into regulatory changes.

The explosive growth of crypto ETFs will have multiple impacts on the market. First, it provides institutional and traditional investors with a compliant and convenient channel to invest in cryptocurrencies. Many institutions are restricted by compliance requirements or technical capabilities and cannot directly purchase or custody crypto, which ETFs solve. Second, the launch of ETFs increases crypto liquidity and market depth, making price discovery more efficient. Third, it accelerates the integration of crypto with the traditional financial system, turning crypto from a fringe asset into a mainstream investment option.

However, the ETF boom also brings potential risks. Too many product choices may confuse investors, and the high-risk nature of leveraged and inverse ETFs could attract unsuitable investors. Additionally, when large amounts of capital flow into specific cryptocurrencies via ETFs, it could amplify price volatility and trigger chain reactions during market panic. Regulators and ETF issuers need to find a balance between encouraging innovation and protecting investors.

In the long term, the boom in crypto ETFs is a key sign of the crypto market’s maturation. It means cryptocurrencies have evolved from speculative tools to legitimate investment asset classes, gaining regulatory recognition and institutional acceptance. This will bring more capital, talent, and innovation to the entire industry, driving further development of crypto technology and applications.