XRP + Dogecoin ETF Launch! Grayscale INTERVIEW
The cryptocurrency ETF landscape expanded significantly as Grayscale unveiled two new products—an XRP ETF and a Dogecoin ETF—during a period of heightened market volatility. Zach Pandl, Grayscale's Head of Research, discussed these launches alongside broader market dynamics in a recent interview, emphasizing that despite short-term turbulence, the fundamental drivers of the crypto bull market remain intact. According to Pandl, much of the recent price volatility stems not from crypto-native factors but from a broader repricing of macroeconomic expectations, including increased caution about labor markets and Federal Reserve policy direction.
The XRP ETF launch positions Grayscale alongside competitors like Canary and Bitwise in offering institutional exposure to one of cryptocurrency's largest assets. Pandl characterized XRP as a battle-tested blockchain originally designed for payments but now broadening to other use cases, representing a different flavor of crypto exposure compared to smart contract platforms like Solana. A key differentiator for future competitiveness may be staking capabilities—Grayscale has already begun offering staking in its Ethereum products and plans to expand this feature across other proof-of-stake assets. Institutional investors have shown laser focus on capturing staking rewards, with rates exceeding seven percent on some protocols, making this capability a significant driver of ETF demand.
Perhaps more unconventional is Grayscale's Dogecoin ETF (ticker: GDOG), which Pandl described as "tokenized internet culture." While acknowledging Dogecoin's higher risk profile compared to Bitcoin, he framed meme tokens as a legitimate part of the crypto ecosystem and internet culture more broadly. Pandl suggested that while institutional investors will likely prioritize Bitcoin, Ethereum, and Solana for long-horizon portfolios, there will be substantial trading interest in Dogecoin from shorter-term oriented investors. He also noted the potential for other meme assets like Pingu to eventually receive ETF treatment if sufficient demand materializes, comparing these cultural tokens to fine art investments.
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On the question of what could catalyze a market recovery in the next 60 days, Pandl pointed to several factors: renewed ETF inflows to offset selling pressure from long-term Bitcoin holders, progress on market structure legislation including the Senate version of the clarity act, and stabilization in broader equity markets. He emphasized that Bitcoin holders have been selling consistently since Bitcoin ETFs launched in January 2024, yet prices rose during that period because ETFs provided ready buyers. The key now is seeing that institutional bid return to the market, which would confirm a bottom and provide positive momentum heading into year-end.
Privacy tokens emerged as another discussion topic, with assets like Zcash experiencing explosive growth from approximately $913 million in September to over $10 billion in market capitalization. Pandl characterized privacy as the most obvious missing element in blockchain technology that requires substantial development work over the coming years. He views the surge in privacy token valuations as part of the natural maturation of the industry, following progress on security, scaling, and interoperability challenges. This theme aligns with broader institutional concerns about decentralization, particularly following recent centralized infrastructure failures at companies like Cloudflare, which highlighted the resilience advantages of decentralized systems.
Despite short-term market headwinds, Pandl expressed optimism about crypto's longer-term trajectory, pointing to rising venture capital investment as evidence of sustained confidence. October saw $3.87 billion flowing into crypto ventures, representing an upward trend that suggests anyone with a long-term perspective—whether VCs, builders, or business operators—feels positive about the industry's direction. While Federal Reserve meetings and other factors may create near-term volatility, Pandl argued that the arrows are pointing in the right direction for crypto assets and technology, encouraging investors to maintain a long-term mindset while Grayscale helps navigate short-term market fluctuations.
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