Bitwise is winding down its Dogecoin exchange-traded fund less than a year after the product began trading on NYSE Arca. The fund, which trades under the ticker BWOW, is set to stop trading on Oct. 14, with cash distributions to remaining investors scheduled for Oct. 22.
The closure follows a weak asset and trading profile for the product. As of Oct. 7, BWOW held about $725,870 in assets under management, and its trading volume in September totaled $51,480.
A short-lived launch
BWOW listed in November last year, but it is now entering liquidation proceedings before reaching its first anniversary. The timetable disclosed for the shutdown gives current holders a brief window before trading ends and the fund is converted into cash for distribution.
The decision underscores how difficult it can be for narrowly focused crypto investment products to gain traction, even when the underlying token has a large retail following outside traditional brokerage accounts.
CEO says ETF demand never materialized
Bitwise Chief Executive Officer Hunter Horsley described the outcome for the firm’s spot Dogecoin ETF as “tragic.” He said the product’s weak performance exposed a disconnect between people who use crypto apps and investors who buy exchange-traded funds.
Horsley said he personally likes Dogecoin and owns it, but said the ETF format did not produce results. In his view, investors did not want to allocate money to Dogecoin through this vehicle, although he added that could change over time.
Different results across Bitwise products
The poor showing for BWOW stands in contrast to the firm’s Bitwise Solana Staking ETF, or BSOL. According to Horsley, that fund has gathered $1.3 billion in net assets.
He attributed BSOL’s stronger performance to its staking feature and to broader conviction around Solana. Horsley also said the trade was tied to expectations that Solana could benefit from asset tokenization and stablecoin activity across blockchain networks.
What Bitwise is focusing on next
While BWOW is being closed, Bitwise has continued to expand other parts of its lineup. The firm recently launched the spot Near Protocol ETF, trading under the ticker NRR.
Horsley also pointed to BITW and BITQ as longer-term products for investors who do not want to make a specific call on where the market is headed. For BWOW investors, the next confirmed dates are Oct. 14 for the end of trading and Oct. 22 for planned cash distributions.
Source: en.bloomingbit.io