Bitwise closes Dogecoin ETF: warning that ETF access does not equal demand

Bitwise will end its Dogecoin ETF in October: Warning for sustainable demand for single token funds

Bitwise announced that it will stop trading in its Dogecoin ETF in October. The decision was made shortly after the transaction was launched, demonstrating that while obtaining regulatory approval and access to brokerage channels are important developments, it does not guarantee sustainable demand for cryptocurrency funds targeting a single token.

A more indicative phenomenon is the divergence between those altcoins that still attract ETF investment and those whose ecosystems are still focused on crypto-centralized channels. Bitwise is currently in two situations: BWOW is gradually withdrawing, and its Hyperliquid ETF is attracting a higher level of attention.

BWOW was liquidated in late October

According to Form 8-K filed with the U.S. Securities and Exchange Commission (SEC), Bitwise Investment Advisers has reported to the New York Stock Exchange the decision to voluntarily close, delist and liquidate the Bitwise Dogcoin ETF (code: BWOW). Trading is expected to stop on October 14.

No further action is required for investors who still hold BWOW shares after liquidation. The remaining shares will be converted into cash based on the fund's net asset value as of October 21. Cash distribution is expected to take place around October 22. The SEC filing also states that these allocations would constitute taxable events.

Bitwise provided only a brief explanation in its liquidation notice: "Bitwise decided to liquidate the fund in order to continue to optimize its product range to meet changing investor needs."

The company did not specify any specific assets, trading volumes or incoming funds that led to the closure. The explanation provided was that the company had been working to optimize its offers due to changing investor needs, which led to the closure.

However, the fund's own data reveals the reasons for the closure. BWOP never reached any significant scale, and signs of weakness were evident even before Bitwise made its decision to close.

Data behind weak demand

Bitwise announced the launch of BWOP on November 25, 2025, and began trading on November 26. As of September 8, the fund's assets were only US$721,815, or approximately 8.2 million DOGE units. Its data at the end of August showed that the cumulative return on net assets (NAV return) since its establishment was-45.37%.

Signs of weakness appear earlier. BWOP's second-quarter filings showed net assets fell to $473,547 on June 30 from $1.15 million at the end of 2025. No new shares were created in the first half of 2026, but 20,000 shares were redeemed. The fund has never been built to a meaningful scale.

Trading activities tell the same story. BWOP averaged about $3 million in average trading volume during its opening week, but has never approached this level since. According to The Block, as of September 10, the cumulative trading volume of the Dogecoin ETF in the United States was approximately US$300 million. This lags far behind the Hyperliquid ETF's $2.1 billion, Zcash products's $1.5 billion, and Chainlink Fund's $680 million, underscoring the scant interest that the Dogcoin ETF has received in the secondary market compared to other newer altcoin products.

Where is demand going? The contrast between

and Bitwise's Hyperliquid ETF (BHYP) cannot be ignored. Cryptopitan reported in August that according to Arkham data, Bitwis-related ETF wallets purchased more than $5 million in HYPE in a week and had not sold it since July. The on-chain estimate is not an official Bitwise fund flow report, but it fits the bigger picture of stronger HYPE ETF activity.

Dogecoin ETF is moving in the opposite direction. According to SoValue data, three DOGE funds in the United States had a net outflow of approximately US$670,530 in the past 30 days, with a cumulative net inflow of only US$11.77 million.

Comparison of demand between Dogecoin and Hyperliquid ETF in 2026: Comparison of asset management scale, transaction volume and capital inflows

The conclusion reached is not that Memecoins cannot operate in the ETF structure. A large community does not automatically translate into continued demand for brokers.

Going public is just an easy step

Spot cryptocurrency products have become easier to launch after the SEC approved common listing standards based on commodity trust shares on September 17, 2025. Eligible products can now be listed without proposing a separate rule change for each fund.

This expands the field of competition but does not equalize demand. ETF.com estimates that spot Solana products have attracted nearly US$880 million in cumulative capital inflows, and spot XRP products are approximately US$1 billion.

For the global crypto market, the closure of BWOP shows that a more convenient market-to-market process can speed product launches, but does not guarantee survival. Issuers may focus on tokens that can maintain asset, liquidity and duplicate capital inflows, concentrating liquidity in regulated markets on a small number of altcoins.

The threshold for obtaining ETFs is being lowered. However, continued demand still needs to be won through hard work.