What’s TDOG, and the way does it work?
21Shares’ Dogecoin exchange-traded fund (ETF), TDOG, not too long ago appeared on the DTCC’s Lively and Pre-Launch record underneath the ticker TDOG. The itemizing connects brokers and clearing establishments in preparation for potential buying and selling, nevertheless it doesn’t point out regulatory approval.
The proposed TDOG/21Shares Dogecoin (DOGE) belief is meant to be bodily backed (i.e., holding Dogecoin straight) and to problem shares designed to trace DOGE’s value (much less charges).
The fund calculates its each day web asset worth (NAV) utilizing a multi-exchange Dogecoin value index. Throughout market hours, it additionally publishes an intraday indicative worth roughly each 15 seconds, permitting merchants to gauge how the shares align with the underlying asset.
Creations and redemptions usually happen in money.
Licensed members (AP) sometimes ship money, after which the sponsor instructs the prime dealer (Coinbase) to buy DOGE or use present holdings, transferring it to Coinbase Custody Belief Firm, which safekeeps the cash for the belief.
The reverse move applies to redemptions. Arbitrage by APs and market makers usually helps maintain the share value aligned with NAV, although small intraday premiums or reductions should happen, particularly during times of excessive volatility or restricted liquidity.
Two factors of notice:
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Charges are paid in type, so the quantity of DOGE per share will progressively decline over time as sponsor charges are deducted.
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Till each US Securities and Trade Fee filings are accredited, TDOG won’t commerce. The Depository Belief and Clearing Company (DTCC) itemizing solely signifies operational readiness, not regulatory clearance.
Do you know? For TDOG, “pay in type” means the sponsor payment is deducted in DOGE fairly than money. In consequence, the quantity of Dogecoin backing every share progressively decreases over time, regardless that the share value continues to trace Dogecoin’s market worth.
DTCC itemizing just isn’t SEC approval
Seeing TDOG on DTCC’s Lively and Pre-Launch web page merely means the operational setup is underway.
Brokers and clearing corporations can map the ticker and put together their techniques, however pre-launch listings aren’t but eligible for DTCC processing, and the looks doesn’t authorize change buying and selling or sign regulatory approval.
TDOG nonetheless wants two formal inexperienced lights from the SEC:
Comparable crypto funds have proven up on DTCC forward of launch, which is why this step needs to be learn as operational readiness (not approval).
How TDOG would monitor DOGE
If accredited, the belief would worth its holdings utilizing CF Benchmarks’ Dogecoin-Greenback US Settlement Value (a once-daily benchmark constructed from executed trades throughout a number of qualifying DOGE-USD venues).
The system is designed to be replicable and immune to manipulation, and it’s administered underneath the UK benchmark regime. The belief calculates its each day NAV based mostly on that print: In the course of the buying and selling day, the share value can fluctuate round NAV based mostly on provide and demand.
One nuance: The pricing benchmark doesn’t embrace forks or airdrops. In line with the prospectus, the belief disclaims any airdropped belongings and gained’t account for forked cash until particularly supported and distributed.
In brief, don’t anticipate further worth from forks or airdrops to be mirrored within the fund.
Do you know? Many ETFs (and commodity trusts) create and redeem in massive “creation items” dealt with by licensed members, typically tens of 1000’s of shares at a time. That “plumbing” is what helps maintain costs close to NAV, regardless that you commerce single shares.
TDOG vs. shopping for DOGE straight
Wouldn’t it simply be simpler to purchase DOGE straight? It relies upon.
If accredited, TDOG would supply Dogecoin value publicity by a daily brokerage account. The belief holds DOGE, values the shares off CF Benchmarks’ once-daily Dogecoin index and makes use of money creations/redemptions routed by Coinbase (with Coinbase Custody holding cash in chilly storage).
As explored, one structural wrinkle issues for anybody planning to carry: The sponsor payment is taken in DOGE, so the DOGE-per-share progressively drifts down over time. Shares also can commerce a contact above or under each day NAV throughout market hours.
The enchantment of TDOG lies in its comfort and infrastructure. It trades like every other ETF — no wallets or seed phrases required. Custody is institutional, valuation follows a printed rule set, and the creation and redemption course of, together with market-maker arbitrage, usually retains costs near NAV. The payment is disclosed transparently and deducted from the fund’s belongings, permitting buyers to see the all-in price with out coping with a number of suppliers.
The trade-offs are the flip aspect of that comfort. As a result of charges are paid in type, longer holding intervals progressively scale back the quantity of DOGE backing every share. Intraday premiums or reductions can also happen.
You additionally depend on counterparties, together with the prime dealer, custodian and index administrator, and also you lose onchain utility since you’ll be able to’t tip, spend or work together with Dogecoin straight by an ETF.
Shopping for DOGE straight flips these dynamics. You achieve full onchain management and 24/7 utility, with no sponsor payment eroding your stability.
In return, you tackle key administration duties or change and platform threat when you go away cash with a 3rd social gathering, together with the operational overhead of managing wallets, transfers, safety setups and fiat onramps. The higher selection in the end depends upon what you worth extra: brokerage-account simplicity or direct management and onchain entry.
The place TDOG suits alongside DOJE
There’s already a US Dogecoin product buying and selling: the REX-Osprey DOGE ETF (DOJE) on Cboe BZX.
It’s a 1940-act ETF that goals to ship roughly 1x DOGE efficiency (earlier than charges) and will maintain a mixture of spot Dogecoin publicity and DOGE-linked devices. To adjust to US laws and presumably keep Regulated Funding Firm (RIC) tax standing, it’s structured through a Cayman subsidiary (the “REX-Osprey DOGE Cayman Portfolio”) that holds the cryptocurrency exposures.
The expense ratio is 1.50%. DOJE listed on Sept. 18, 2025, and launched with publicity to each spot DOGE and the 21Shares DOGE exchange-traded product (ETP), although the precise combine can change over time.
If TDOG is accredited, it might sit beside DOJE as a special wrapper with completely different mechanics:
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Construction and venue: TDOG can be a commodity-based belief that holds DOGE straight and lists on Nasdaq, utilizing money creations and redemptions. DOJE is a 1940-act ETF on Cboe that mixes spot DOGE with DOGE-linked ETPs inside its mandate.
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Valuation and portfolio: TDOG’s NAV can be based mostly on CF Benchmarks’ once-daily Dogecoin-dollar settlement value. DOJE seeks Dogecoin publicity by a diversified basket that will embrace non-US ETPs together with spot DOGE.
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Charges: TDOG’s sponsor payment just isn’t but closing within the preliminary filings; DOJE discloses a 1.5% expense ratio.
Finally, DOJE is stay as we speak on Cboe with a printed 1.5% payment and a versatile toolkit to reflect DOGE.
TDOG remains to be awaiting SEC approvals to record as a bodily backed belief on Nasdaq. If it launches, US buyers could have two distinct paths to DOGE publicity, a grantor-trust mannequin (TDOG) and a 1940-act ETF (DOJE), every with its personal payment profile, holding constraints and operational trade-offs.
Do you know? A grantor belief (like TDOG can be) and a 1940-act ETF (like DOJE) sit underneath completely different tax and portfolio rulebooks: The belief passes by direct asset publicity, whereas the ETF can use baskets (and even a Cayman sub) to keep up RIC standing.
Learn how to purchase TDOG (if/when it lists)
If regulators approve each items (the S-1 registration and Nasdaq’s 19b-4 rule change), TDOG will begin buying and selling on Nasdaq.
From there:
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Discover the ticker in your dealer: As soon as corporations end mapping, “TDOG” will seem alongside different Nasdaq-listed ETFs. Availability can fluctuate by dealer and area, and a few brokers place further checks on commodity-style crypto merchandise.
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Use an eligible account: Most traditional brokerage accounts help ETFs, however some tax-advantaged or institutional accounts could have further restrictions. Affirm eligibility, margin permissions and any firm-level restrictions earlier than funding.
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Place the order with care: Early classes can have wider spreads and thinner liquidity. Favor restrict orders (not market orders) and be cautious across the open and shut.
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Perceive prices: Your whole price is the dealer’s fee (typically zero), the bid-ask unfold, and the fund’s ongoing sponsor payment (mirrored in efficiency, not charged at checkout). The ultimate prospectus will present the precise payment and creation/redemption particulars.
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After you purchase: Trades choose the usual US fairness cycle. You’ll be able to monitor TDOG throughout market hours and evaluate its value to issuer-reported NAV updates.
Till approvals are finalized, TDOG isn’t tradable. For listed DOGE publicity as we speak, you’ll be able to discover DOJE on Cboe by your dealer. Availability, tax remedy and suitability rely in your jurisdiction and particular person circumstances.