Bitwise, a U.S. crypto asset manager, will liquidate its dogecoin (DOGE) ETF BWOW less than a year after launching it.

CoinPost reported on Thursday that Bitwise said the previous day it had decided to liquidate and close BWOW. BWOW is a dogecoin spot ETF listed on NYSE Arca on Nov. 25 last year.

The final trading day on NYSE Arca will be Oct. 14. Shareholders can sell their holdings in the market until the close that day. Creation of new shares will be suspended before trading begins on Oct. 15, after which the fund will cease operations. Remaining shareholders will receive a cash payment on Oct. 22 based on the net asset value calculated as of Oct. 21. No separate action is required.

Bitwise described the move as a decision to optimise its product lineup in response to changing investor demand. It will work with the NYSE on the delisting and liquidation process.

The outlet also reported that fund profitability and the sustainability of operations are cited in the ETF industry as major factors behind liquidations. ETFs incur fixed costs such as regulatory reporting and compliance, exchange listing, marketing and custody, making it difficult to cover expenses with fee income alone if assets under management do not grow sufficiently. It said meme coins such as DOGE see active retail trading, while allocations from institutions such as hedge funds and registered investment advisers are relatively limited.

Bitwise has continued to wind down underperforming products this year. In May, it announced the liquidation of the Web3 ETF BWEB and the bitcoin-ethereum rotation strategy ETF BTOP. BWOW's closure is therefore seen as part of Bitwise's reshuffling of its ETF lineup.