What is TDOG, and how does it work?
21Shares’ Dogecoin exchange-traded fund (ETF), TDOG, has recently surfaced on the DTCC’s Active and Pre-Launch list under the ticker TDOG. This listing connects brokers and clearing entities in anticipation of potential trading, but does not signify regulatory approval.
The proposed TDOG/21Shares Dogecoin (DOGE) trust is set to be physically backed, meaning it will hold Dogecoin directly, and will issue shares meant to track DOGE’s price (minus fees).
The fund assesses its daily net asset value (NAV) utilizing a multi-exchange Dogecoin price index. During trading hours, it also publishes an intraday indicative value approximately every 15 seconds, enabling traders to determine how shares relate to the underlying asset.
Creations and redemptions generally happen in cash.
Authorized participants (AP) usually provide cash, after which the sponsor directs the prime broker (Coinbase) to acquire DOGE or utilize existing holdings, which are then transferred to Coinbase Custody Trust Company for safekeeping.
The reverse process applies to redemptions. Arbitrage activities by APs and market makers generally assist in keeping the share price aligned with NAV, although minor intraday premiums or discounts may still occur, especially in times of high volatility or limited liquidity.
Two key points:
Fees are paid in kind, meaning the amount of DOGE per share will slowly decrease over time as sponsor fees are deducted.
Until both US Securities and Exchange Commission filings are approved, TDOG will not commence trading. The Depository Trust and Clearing Corporation (DTCC) listing only signifies operational readiness, without providing regulatory clearance.
Did you know? For TDOG, “pay in kind” refers to the sponsor fee being taken in DOGE rather than cash. Consequently, the amount of Dogecoin backing each share gradually diminishes over time, despite the share price continuing to mirror Dogecoin’s market value.
DTCC listing is not SEC approval
Seeing TDOG on DTCC’s Active and Pre-Launch page indicates that operational setup is progressing.
Brokers and clearing firms can prepare their systems by mapping the ticker, but pre-launch listings aren’t eligible for DTCC processing yet, and the appearance does not authorize exchange trading or signal regulatory approval.
TDOG still awaits two formal approvals from the SEC:
Similar crypto funds have appeared on DTCC before launch, hence this step should be interpreted as operational readiness (not approval).
How TDOG would track DOGE
If approved, the trust would value its holdings using CF Benchmarks’ Dogecoin-Dollar US Settlement Price, a single daily benchmark derived from conducted trades across various qualifying DOGE-USD platforms.
The system is designed to be reproducible and resistant to manipulation, managed under the UK benchmark regime. The trust determines its daily NAV based on that metric: During trading hours, the share price may fluctuate around NAV according to supply and demand.
One important detail: The pricing benchmark does not encompass forks or airdrops. According to the prospectus, the trust disclaims any airdropped assets and will not consider forked coins unless they are specifically recognized and distributed.
In brief, do not anticipate added value from forks or airdrops in the fund.
Did you know? Many ETFs (and commodity trusts) create and redeem in large “creation units” administered by authorized participants, often representing tens of thousands of shares at a time. This “plumbing” helps maintain prices close to NAV, even with single share trading.
TDOG vs. buying DOGE directly
Would it simply be easier to purchase DOGE directly? That depends.
If approved, TDOG would provide Dogecoin price exposure through a regular brokerage account. The trust retains DOGE, deriving share values from CF Benchmarks’ daily Dogecoin index and utilizes cash creations/redemptions processed through Coinbase (with Coinbase Custody securing coins in cold storage).
As discussed, one structural aspect matters for anyone planning to hold: The sponsor fee is collected in DOGE, leading to a gradual decline in DOGE-per-share over time. Shares may 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 — eliminating the need for wallets or seed phrases. Custody is institutional, valuation adheres to a set rule, and the creation and redemption process, as well as market-maker arbitrage, generally keeps prices close to NAV. The fee is clearly disclosed and deducted from the fund’s assets, allowing investors to see the comprehensive cost without navigating multiple providers.
The trade-offs accompany that convenience. As fees are paid in kind, prolonged holding periods incrementally decrease the amount of DOGE backing each share. Intraday premiums or discounts could occur as well.
Moreover, you depend on counterparties, including the prime broker, custodian, and index administrator, and lose on-chain utility, as you cannot tip, spend, or interact with Dogecoin directly through an ETF.
Purchasing DOGE directly alters those dynamics. You gain complete on-chain control and 24/7 utility, with no sponsor fee eroding your balance.
In exchange, you assume significant management responsibilities or risk from exchanges and platforms if you store coins with a third party, in addition to the operational details of managing wallets, transfers, security systems, and fiat onramps. Ultimately, the better choice comes down to what you prioritize more: brokerage-account simplicity or direct control and on-chain access.
Where TDOG fits alongside DOJE
There’s already a US Dogecoin product available: the REX-Osprey DOGE ETF (DOJE) on Cboe BZX.
This is a 1940-act ETF that aims to provide roughly 1x DOGE performance (before fees) and may possess a combination of spot Dogecoin exposure and DOGE-linked instruments. To adhere to US regulations and possibly maintain Regulated Investment Company (RIC) tax status, it’s structured through a Cayman subsidiary (the “REX-Osprey DOGE Cayman Portfolio”) that holds the cryptocurrency exposures.
The expense ratio stands at 1.50%. DOJE was listed on Sept. 18, 2025, and launched with exposure to both spot DOGE and the 21Shares DOGE exchange-traded product (ETP), although the precise composition may change over time.
If TDOG receives approval, it would position itself beside DOJE as a different wrapper with distinct mechanics:
Structure and venue: TDOG would be a commodity-based trust that directly holds DOGE and lists on Nasdaq, employing cash creations and redemptions. DOJE is a 1940-act ETF on Cboe that integrates spot DOGE with DOGE-linked ETPs within its framework.
Valuation and portfolio: TDOG’s NAV would be determined by CF Benchmarks’ once-daily Dogecoin-dollar settlement price. DOJE seeks Dogecoin exposure via a diversified portfolio that may include non-US ETPs alongside spot DOGE.
Fees: TDOG’s sponsor fee is not yet finalized in the preliminary filings; DOJE lists a 1.5% expense ratio.
Ultimately, DOJE is currently operational on Cboe with a published 1.5% fee and a versatile toolkit to track DOGE.
TDOG is still awaiting SEC approvals to operate as a physically backed trust on Nasdaq. If it is launched, US investors will have two various avenues for DOGE exposure: a grantor-trust model (TDOG) and a 1940-act ETF (DOJE), each featuring its own fee structure, holding limitations, and operational considerations.
Did you know? A grantor trust (like TDOG would be) and a 1940-act ETF (like DOJE) operate under different tax and portfolio regulations: The trust provides direct asset exposure, whereas the ETF can utilize baskets (and even a Cayman sub) to maintain RIC status.
How to buy TDOG (if/when it lists)
If regulators grant approval for both components (the S-1 registration and Nasdaq’s 19b-4 rule change), TDOG will commence trading on Nasdaq.
From there:
Find the ticker with your broker: Once firms finish mapping, “TDOG” will show up alongside other Nasdaq-listed ETFs. Availability may vary by broker and region, and some brokers impose extra constraints on commodity-style crypto products.
Use a qualified account: Most standard brokerage accounts accommodate ETFs, although some tax-advantaged or institutional accounts may have additional limitations. Verify eligibility, margin permissions, and any firm-specific restrictions prior to funding.
Place the order carefully: Early trading sessions may experience wider spreads and less liquidity. Opt for limit orders (instead of market orders) and exercise caution around market opens and closes.
Grasp costs: Your overall cost includes the broker’s commission (often zero), the bid-ask spread, and the fund’s ongoing sponsor fee (reflected in performance, not incurred at checkout). The final prospectus will disclose the precise fee and creation/redemption specifics.
After purchase: Trades settle according to the standard US equity cycle. You can monitor TDOG during market hours and compare its price with issuer-reported NAV updates.
Until approvals are completed, TDOG isn’t available for trading. For listed DOGE exposure today, explore DOJE on Cboe through your broker. Availability, tax implications, and suitability are contingent on your jurisdiction and personal circumstances.
