What is TDOG, and how does it work?
21Shares’ Dogecoin exchange-traded fund (ETF), TDOG, has recently made its appearance on the DTCC’s Active and Pre-Launch list under the ticker TDOG. This listing connects brokers and clearing institutions in anticipation of potential trading, although it does not signify regulatory approval.
The proposed TDOG/21Shares Dogecoin (DOGE) trust aims to be physically backed (i.e., holding Dogecoin directly) and to issue shares meant to track DOGE’s price (minus fees).
The fund determines its daily net asset value (NAV) using a multi-exchange Dogecoin price index. During market hours, it also publishes an intraday indicative value roughly every 15 seconds, allowing traders to understand how the shares align with the underlying asset.
Creations and redemptions typically take place in cash.
Authorized participants (AP) usually provide cash, after which the sponsor directs the prime broker (Coinbase) to acquire DOGE or utilize existing holdings, transferring it to Coinbase Custody Trust Company, which safely stores the coins for the trust.
The reverse process applies to redemptions. Arbitrage by APs and market makers generally helps maintain the share price in sync with NAV, though minor intraday premiums or discounts may still arise, especially during times of high volatility or limited liquidity.
Two important points:
Fees are paid in kind, meaning the amount of DOGE per share will gradually diminish over time as sponsor fees are deducted.
Until both filings with the US Securities and Exchange Commission are approved, TDOG will not begin trading. The DTCC listing indicates operational readiness, not regulatory clearance.
Did you know? For TDOG, “pay in kind” means the sponsor fee is deducted in DOGE rather than cash. Therefore, the amount of Dogecoin backing each share gradually decreases over time, even while the share price continues to track Dogecoin’s market value.
DTCC listing is not SEC approval
Seeing TDOG on DTCC’s Active and Pre-Launch page signifies that the operational setup is in progress.
Brokers and clearing firms can map the ticker and prepare their systems, yet pre-launch listings aren’t currently eligible for DTCC processing, and the appearance does not authorize exchange trading or indicate regulatory approval.
TDOG still requires two formal approvals from the SEC:
Similar crypto funds have appeared on DTCC before launching, making this step indicative of operational readiness (not approval).
How TDOG would track DOGE
If approved, the trust would evaluate its holdings using CF Benchmarks’ Dogecoin-Dollar US Settlement Price (a once-daily benchmark derived from executed trades across multiple qualifying DOGE-USD venues).
The system is constructed to be replicable and resistant to manipulation, administered under the UK benchmark regime. The trust calculates its daily NAV based on that figure: During the trading day, the share price may fluctuate around NAV based on supply and demand.
One key detail: The pricing benchmark does not incorporate forks or airdrops. As stated in the prospectus, the trust disclaims any airdropped assets and won’t recognize forked coins unless explicitly supported and distributed.
In summary, do not anticipate additional value from forks or airdrops being reflected in the fund.
Did you know? Many ETFs (and commodity trusts) create and redeem in large “creation units” handled by authorized participants, often involving tens of thousands of shares at a time. This “plumbing” is what keeps prices near NAV, even when you trade single shares.
TDOG vs. buying DOGE directly
Is it not easier to buy DOGE directly? It depends.
If approved, TDOG would provide Dogecoin price exposure via a standard brokerage account. The trust holds DOGE, values the shares based on CF Benchmarks’ once-daily Dogecoin index, and utilizes cash creations/redemptions processed through Coinbase (with Coinbase Custody maintaining coins in cold storage).
As outlined, one structural nuance is crucial for anyone planning to hold: The sponsor fee is charged in DOGE, which means the DOGE-per-share may gradually decline over time. Shares can also trade slightly above or below daily NAV during market hours.
The allure of TDOG lies in its convenience and infrastructure. It trades like any other ETF — no wallets or seed phrases needed. Custody is institutional, valuation adheres to a published rule set, and the creation and redemption process, along with market-maker arbitrage, usually maintains prices close to NAV. The fee is clearly disclosed and subtracted from the fund’s assets, enabling investors to see the all-in cost without interacting with multiple providers.
The trade-offs come hand in hand with that convenience. Since fees are deducted in kind, prolonged holding periods gradually diminish the amount of DOGE backing each share. Intraday premiums or discounts may also occur.
Additionally, you depend on various counterparties, including the prime broker, custodian, and index administrator, while sacrificing on-chain utility since you can’t tip, spend, or interact with Dogecoin directly through an ETF.
Conversely, purchasing DOGE directly flips those dynamics. You gain complete on-chain control and 24/7 utility, without a sponsor fee diminishing your balance.
In return, you assume significant management responsibilities or the risk of exchanges and platforms if you leave coins with a third party, in addition to the operational overhead of managing wallets, transfers, security setups, and fiat onramps. The superior choice ultimately hinges on what you value more: brokerage-account simplicity or direct control and on-chain access.
Where TDOG fits alongside DOJE
There is already a US Dogecoin product trading: the REX-Osprey DOGE ETF (DOJE) on Cboe BZX.
It’s a 1940-act ETF aimed at delivering roughly 1x DOGE performance (before fees) and may hold a mix of spot Dogecoin exposure and DOGE-linked instruments. To comply with US regulations and potentially maintain Regulated Investment Company (RIC) tax status, it’s structured via a Cayman subsidiary (the “REX-Osprey DOGE Cayman Portfolio”) that contains the cryptocurrency exposures.
The expense ratio stands at 1.50%. DOJE debuted on Sept. 18, 2025, and launched with exposure to both spot DOGE and the 21Shares DOGE exchange-traded product (ETP), although the specific mix may change over time.
If TDOG receives approval, it would coexist alongside DOJE as a distinct wrapper with different mechanics:
Structure and venue: TDOG would be a commodity-based trust that holds DOGE directly and lists on Nasdaq, employing cash creations and redemptions. DOJE is a 1940-act ETF on Cboe that incorporates both spot DOGE and DOGE-linked ETPs within its framework.
Valuation and portfolio: TDOG’s NAV would hinge on CF Benchmarks’ once-daily Dogecoin-dollar settlement price. DOJE aims for Dogecoin exposure through a diversified basket that might incorporate non-US ETPs alongside spot DOGE.
Fees: TDOG’s sponsor fee is not yet finalized in the preliminary filings; DOJE offers a disclosed 1.5% expense ratio.
Ultimately, DOJE is currently available on Cboe with a published 1.5% fee and a flexible toolkit to mirror DOGE.
TDOG is still waiting for SEC approvals to list as a physically backed trust on Nasdaq. If it launches, US investors will have two distinct avenues for DOGE exposure: a grantor-trust model (TDOG) and a 1940-act ETF (DOJE), each featuring its own fee profile, holding constraints, and operational trade-offs.
Did you know? A grantor trust (like TDOG is expected to be) and a 1940-act ETF (like DOJE) operate under different tax and portfolio regulations: The trust provides direct asset exposure, while the ETF can utilize baskets (and even a Cayman sub) to maintain RIC status.
How to buy TDOG (if/when it lists)
If regulators approve both components (the S-1 registration and Nasdaq’s 19b-4 rule change), TDOG will begin trading on Nasdaq.
From there:
Find the ticker in your broker: Once firms complete the mapping, “TDOG” will appear alongside other Nasdaq-listed ETFs. Availability may vary by broker and region, with some brokers implementing additional checks on commodity-style crypto products.
Use an eligible account: Most standard brokerage accounts support ETFs, though some tax-advantaged or institutional accounts could have further restrictions. Confirm eligibility, margin permissions, and any firm-specific limitations before funding.
Place the order carefully: Early trading sessions can exhibit wider spreads and lower liquidity. Opt for limit orders (not market orders) and be vigilant during the market open and close.
Understand costs: Your total cost encompasses the broker’s commission (often zero), the bid-ask spread, and the fund’s ongoing sponsor fee (visible in performance, not charged at the point of purchase). The final prospectus will detail the exact fee structure and creation/redemption specifics.
Post-purchase: Trades settle following the standard US equity cycle. You can monitor TDOG during market hours and compare its price to issuer-reported NAV updates.
Until approvals are finalized, TDOG is not tradable. For listed DOGE exposure today, consider exploring DOJE on Cboe through your broker. Availability, tax implications, and suitability will depend on your jurisdiction and personal circumstances.
