Dogecoin ETF listed for less than ten months, why did Bitwise choose to shut it down?
Bitwise @BitwiseInvest announced on September 10 that it would liquidate its Dogecoin ETF, BWOW, less than ten months after its launch. The fund will stop trading on October 14, and on October 22 it will distribute cash in net asset value terms. As of September 8, BWOW’s assets under management were only about $722,000, and its net asset value has fallen by roughly 45% since inception.
The reason behind it is not complicated. BWOW’s management fee rate is just 0.34%. Based on the current fund size, the annual management fee revenue is less than $3,000, making it difficult to cover the compliance and operating costs of a listed ETF. From a business perspective, continuing to maintain the <a>$DOGE </a>ETF no longer has much meaning.
Bitwise @BitwiseInvest announced on September 10 that it would liquidate its Dogecoin ETF, BWOW, less than ten months after its launch. The fund will stop trading on October 14, and on October 22 it will distribute cash in net asset value terms. As of September 8, BWOW’s assets under management were only about $722,000, and its net asset value has fallen by roughly 45% since inception.
The reason behind it is not complicated. BWOW’s management fee rate is just 0.34%. Based on the current fund size, the annual management fee revenue is less than $3,000, making it difficult to cover the compliance and operating costs of a listed ETF. From a business perspective, continuing to maintain the <a>$DOGE </a>ETF no longer has much meaning.
