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Dogecoin Is A ‘Client-Statement Risk’ For Advisers, ETF Experts Say

Dogecoin’s try to hitch the institutional ETF lineup is working right into a primary drawback: establishments could not need it. In a Jan. 22 dialog on the Crypto Prime podcast, Bloomberg Intelligence ETF analyst James Seyffart and host Nate Geraci who can be the President of NovaDius Wealth Management mentioned spot Dogecoin ETFs have attracted “close to zero” demand up to now, an final result they tied to who sometimes buys DOGE, and the way monetary advisers take into consideration reputational danger inside shopper portfolios.

The Dogecoin datapoint landed inside a broader dialogue a couple of crowded crypto ETF pipeline. Seyffart mentioned his working tally of crypto ETF filings has climbed “over 150 unquestionably,” with many merchandise spanning spot and derivatives, earnings overlays, buffers, and multi-asset constructions. The surge, he argued, seems like issuers “throw[ing] the spaghetti on the wall” in 2026.

Dogecoin ETF Reality Check

But quantity of filings doesn’t assure demand, and Dogecoin is the clearest instance provided of that hole so far. Pressed on which present merchandise stood out, Seyffart mentioned “nothing actually stands out,” earlier than singling out Dogecoin because the exception, exactly as a result of it has not resonated.

“The actual sincere reply is like nothing actually stands out to me […] truthfully if I’ve to choose one factor that form of stands out, it’s in all probability that the Doge ETFs have gotten virtually no curiosity by any means,” he mentioned. He added that whereas some newer altcoin merchandise have executed “decently nicely,” Dogecoin has not.

Seyffart and Geraci converged on a requirement thesis: the marginal purchaser of DOGE probably already has the tooling and behavior set to purchase it immediately, relatively than by an ETF wrapper.

“I keep in mind speaking to the fellows at Bitwise. I used to be like, I don’t suppose anybody’s going to purchase this,” Seyffart mentioned. “But possibly I’m flawed. I’ve been flawed loads of occasions earlier than. But I imply, actually nobody has purchased just like the Doge ETFs […] I had fairly low expectations, however I believed possibly they might get to a degree the place they’re barely worthwhile.”

Seyffart pointed to Bitwise’s product—ticker BWOW—as an early scoreboard: “it’s underneath one million in belongings proper now,” he mentioned, calling that “close to zero demand.” He cautioned the funds are nonetheless new, noting the Bitwise product launched on the finish of November, however framed the preliminary traction as “very minuscule.”

Geraci’s rationalization was blunter: ”The individuals who purchase that, generally, these are degens they usually already know the right way to entry this. They have already got digital wallets. They don’t want an ETF to entry this […]. And I feel that’s going to be lots of these different cash which are a lot additional down the market cap spectrum.”

Geraci argued Dogecoin faces a further headwind that doesn’t present up in crypto-native narratives however issues within the ETF market: advisers.

“The different side right here […] is what I name shopper assertion danger,” Geraci mentioned. “So monetary advisors, they’re the most important driver of ETF flows. And so let’s take Dogecoin for example […] If you’re a monetary adviser and you’ve got a Dogecoin ETF present up on a shopper assertion […] it’s like a flashing purple mild saying, ‘Please fireplace me and go discover one other adviser.’”

That framing issues as a result of the episode repeatedly returned to distribution realities. Seyffart mentioned he’s most enthusiastic about basket and index-style crypto ETFs, partly as a result of advisers don’t need to “decide these winners and losers” throughout a rising lengthy tail of belongings. In Geraci’s view, a basket is the “simple button” for professional allocators who need crypto publicity with out underwriting every token’s story or defending it to purchasers.

Seyffart additionally recommended “what the precise chain is doing” can form adviser urge for food, contrasting area of interest infrastructure performs corresponding to Chainlink, which he described as connecting DeFi and TradFi, in opposition to meme belongings like DOGE, which he implied could also be much less “appetizing” for ETF consumers.

At press time, DOGE traded at $0.12479.

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