The first DOGE ETF's trading volume exceeded 6 million USD in the first hour of listing, as the Wall Street meme coin craze hits.

On September 18, the first U.S. exchange-traded fund linked to DOGE, (ETF), surged rapidly after its listing, with a trading volume nearing $6 million within the first hour of opening, far exceeding analysts' expectations, marking the official entry of meme coins into the mainstream financial market on Wall Street. This strong performance not only pushed the price of DOGE up by 4.45% but also triggered a new wave of applications for crypto ETFs.

DOGE ETF first day performance exceeded expectations

According to Bloomberg data, the REX-Osprey Doge ETF (ticker: DOJE) has reached a volume of 5.8 million dollars before midday trading. In comparison, most ETFs usually have a trading volume of less than 1 million dollars on their first day of listing.

Bloomberg analyst Eric Balchunas had informally set the "over/under" price for this issuance at $2.5 million, stating that the results "broke" expectations. This performance is particularly noteworthy because DOJE is registered under the Investment Company Act of 1940, rather than being launched under the Securities Act of 1933 like earlier spot Bitcoin ETFs, which some analysts had anticipated might dampen investor enthusiasm.

As of the time of publication, the trading price of DOGE is $0.281, having risen 4.45% after giving back some of the day's gains, indicating a positive market response to this new product.

encryption ETF market expansion accelerates

The successful listing of DOJE seems to have triggered a wave of applications for more encryption ETF products. As a sign of continuous expansion, REX Shares submitted the filing for the "DOJE Growth and Income ETF" on the same day, while the fund group Tidal Financial collaborated with Quantify Chaos to submit an application for a leveraged encryption index ETF.

The newly applied funds include two leveraged funds targeting altcoins, one of which excludes Bitcoin, while the other excludes both Bitcoin and Ethereum. These funds aim to capture the so-called "altcoin season," which is a period when small tokens perform exceptionally well.

The launch of these new products reflects the issuers' attempts to capitalize on investors' demand for regulated formats of digital assets, adding a new wave for the entry of cryptocurrency ETFs into the market.

The acceptance of encryption by Wall Street is continuously deepening

Despite the recent market volatility, the buzz around the products indicates that Wall Street's acceptance of encryption is deepening. From the success of the Bitcoin ETF to the current DOGE ETF, crypto assets are gradually integrating into the traditional financial system.

Whether DOGE can maintain its early momentum remains to be seen, but its opening trading has secured a place in a market already filled with dozens of underperforming ETFs. This success may also pave the way for the launch of other meme coin ETFs, such as Shiba Inu or Pepe.

Significance for Investors

The launch of the DOGE ETF provides investors with a way to access the meme coin market through traditional brokerage accounts, without the need to directly hold encryption or manage digital wallets. This lowers the barrier to entry, especially for traditional investors who are interested in cryptocurrencies but are unwilling to deal with the technical complexities.

However, investors should be aware that, like all encryption currency investments, the meme coin market remains highly volatile. While the ETF structure provides a certain level of regulatory protection, the risk characteristics of the underlying assets have not changed.

Future Outlook

As the encryption ETF ecosystem expands, we may see more products focused on specific encryption assets or themes being launched. This trend not only aids in the mainstream adoption of cryptocurrencies but also has the potential to bring more institutional funds into the market.

For DOGE, the successful launch of an ETF may further enhance its status as a "legitimate" investment asset, even though it was initially created as an internet joke. This evolution reflects the maturation of the encryption market and the increasingly blurred lines between traditional finance and digital assets.