The largest meme token by market capitalization, Dogecoin has seen the weakness caused by the broad market volatility extend to its ETF ecosystem.
While momentum remains weak, the latest data from SosoValue shows that Dogecoin ETFs have recorded their largest outflow since August this week.
Dogecoin posts $538,000 in ETF outflow this week
Notably, the data shows that Dogecoin ETFs have recorded about $538,000 in net outflows this week as the broader crypto market continues to face steady declines.
The Dogecoin ETF market has continued to see slower participation from investors, as they see little to no weekly inflows month after month.
Nonetheless, the withdrawal seen this week marks the largest outflow recorded since mid-August, when it posted a weekly outflow of over $564,000.
Notably, this marks a setback for the Dogecoin ETF ecosystem as it struggles to maintain positive momentum amid uncertain market conditions, posing a risk of further price declines.
With such slow ETF performance, it appears that institutional investors are exercising caution to hedge against potential losses during this volatile period.
Dogecoin price outlook
With momentum already fading, the poor ETF performance provides a bearish outlook for Dogecoin's price as it signals slow demand among investors.
The ETFs closed the poorly performing week alongside a substantial decline in the price of DOGE, which was hovering around $0.07553 as of October 24, following a price decline of 5.62% over the last 24 hours.
Nonetheless, it is important to note that a single week of outflows does not necessarily confirm a lasting decline in institutional demand. As such, market participants remain hopeful for a shift in market sentiment soon.