In a display of market dichotomy, Dogecoin (DOGE) traded higher on December 10th, gaining approximately 2.59% to reach $0.1458, even as US spot Dogecoin ETFs recorded their third consecutive session of zero net inflows. This divergence highlights that the current short-term momentum is stemming from derivatives market activity rather than institutional allocations through regulated products.
DOGE's Dual Narrative: While ETF flows have stagnated, derivatives markets show heightened activity, with futures open interest and options volume surging to fuel the price increase independently of institutional channels.
📊 Data Sources: SoSoValue, CoinGlass | 📈 Analysis: CoinTrendsCrypto Research
"The price rise indicates that short-term momentum is coming from derivatives markets rather than institutional allocations through regulated products. The imbalance suggests that traders entered the market with a bullish bias, supporting the price without new ETF investment."
DOGE Market Snapshot: ETFs vs. Derivatives
Data reflects market conditions as of December 10, 2025
ETF Channel Remains Inactive as Assets Decline
Data from SoSoValue official data confirms a complete lack of new capital entering the two primary US spot Dogecoin ETFs. Both Grayscale's GDOG and Bitwise's BWOW recorded zero net inflows on December 7, 8, and 9. This stagnation leaves their cumulative net contributions unchanged at just $1.88 million since launch.
More concerning for the ETF narrative is the decline in total assets. Combined total net assets for GDOG and BWOW fell to $5.94 million, down from $6.99 million on December 3rd. This decline followed a single-day withdrawal of nearly $973,000 from BWOW on December 4th, which effectively erased the category's earlier minor gains.
The Dogecoin ETF experiment has failed to attract meaningful institutional capital, with assets declining rather than growing. This stands in stark contrast to the successful launches of Solana and XRP ETFs.
Derivatives Trading Explains the Price Move
While ETFs lay dormant, derivatives markets exploded with activity. CoinGlass data reveals the true engine behind DOGE's price move:
Futures Market Surge: Open interest in DOGE futures increased by 5.58% over 24 hours, reaching $1.47 billion. Trading volume in these contracts rose an even more impressive 45.42% to $3.64 billion.
Options Explosion: Activity in options markets was even more dramatic, with volume soaring more than 236% to reach $41.15 million. This indicates that speculative trading expanded aggressively across multiple derivatives instruments, not just standard futures.
Analyst Insight: "Liquidation data shows the mechanics of the move. DOGE recorded $4.79 million in liquidations in 24 hours, with $2.88 million coming from short positions versus $1.91 million from longs. This short squeeze contributed significantly to the price rise," noted a CoinTrendsCrypto derivatives analyst.
Bullish Positioning Dominates Major Exchanges
The data reveals a clear bullish bias among active traders. Positioning on major exchanges shows significant skew toward long exposure:
• Binance: Long-to-short ratio among all accounts stands at 2.40 to 1
• OKX: Ratio is even more skewed at 3.12 to 1 favoring longs
• Binance Top Traders: Positioning shows a 3.04 ratio favoring long positions
This widespread bullish positioning, combined with the neutral funding rate environment (which indicates the move wasn't driven by excessive leverage), created ideal conditions for a price increase driven by retail and professional trader sentiment rather than institutional ETF flows.
The Institutional Gap: DOGE vs. Other Altcoin ETFs
Stark contrast in institutional adoption between memecoins and established altcoins
Market Implications: A Tale of Two DOGEs
The current situation presents what analysts are calling "a tale of two DOGEs" – the ETF-facing institutional asset versus the derivatives-driven retail favorite.
Institutional Rejection: With only $1.88 million in cumulative inflows and $5.94 million in total assets, DOGE ETFs represent a rounding error compared to Solana ETFs (~$950 million assets) and XRP ETFs (~$945 million assets). This suggests institutions view DOGE primarily as a speculative memecoin rather than a serious blockchain asset.
Retail Resilience: Despite institutional indifference, DOGE maintains significant retail interest, as evidenced by the $1.73 billion in daily spot volume (up 60%) and the explosive derivatives activity. The memecoin narrative and community-driven aspects continue to provide price support independent of traditional finance channels.
Dogecoin's current price action reveals its true market identity: a retail-driven, derivatives-traded asset with minimal institutional appeal. While this provides short-term resilience, it raises questions about long-term stability and adoption beyond speculative trading.
The coming weeks will be telling for Dogecoin. Will derivatives-driven rallies continue to offset institutional indifference, or will the lack of ETF flows eventually weigh on price momentum? For now, DOGE demonstrates that in the cryptocurrency markets, retail sentiment and derivatives trading can sometimes trump institutional capital flows.
FAQ: Understanding Dogecoin's ETF-Derivatives Divergence
Why did DOGE price rise despite zero ETF inflows?
The price increase was driven by derivatives market activity, not ETF flows. A surge in futures open interest (+5.58%), trading volume (+45.42%), and options volume (+236%) combined with a bullish bias among traders and short liquidations to push the price higher independently of institutional products.
How do DOGE ETFs compare to SOL and XRP ETFs?
The contrast is stark. DOGE ETFs have gathered only $1.88 million in inflows and hold $5.94 million in assets. Meanwhile, Solana ETFs manage ~$950 million and XRP ETFs ~$945 million. This suggests institutions view DOGE as a speculative memecoin rather than a serious blockchain investment.
Will DOGE ETFs ever attract significant inflows?
Analysts remain skeptical. Without broader institutional acceptance or regulatory clarity, DOGE ETFs may continue to lag behind SOL and XRP products in the near term, sustaining the current disconnect between price action and institutional interest.
About the Author: Albert Brown
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players.
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