What is TDOG, and how does it work?
21Shares’ Dogecoin exchange-traded fund (ETF), TDOG, recently appeared on the DTCC’s Active and Pre-Launch list under the ticker TDOG. While this listing signifies preparations for potential trading among brokers and clearing institutions, it does not imply regulatory approval.
The proposed TDOG/21Shares Dogecoin (DOGE) trust aims to be physically backed (holding Dogecoin directly) and will issue shares designed to track DOGE’s price (subtracting fees).
The fund determines its daily net asset value (NAV) utilizing a multi-exchange Dogecoin price index. It also publishes an intraday indicative value about every 15 seconds during market hours, helping traders assess alignment between the shares and the underlying asset.
Creations and redemptions typically occur in cash.
Authorized participants (AP) usually provide cash, after which the sponsor directs the prime broker (Coinbase) to either acquire DOGE or use existing assets, transferring it to Coinbase Custody Trust Company for safekeeping.
For redemptions, the reverse process applies. Arbitrage by APs and market makers generally ensures that the share price remains close to NAV, although minor intraday premiums or discounts may occur, especially in volatile or illiquid periods.
Two notable points:
Fees are deducted in kind, resulting in a gradual decline in the amount of DOGE per share over time as sponsor fees are subtracted.
Until both US Securities and Exchange Commission filings receive approval, TDOG will not start trading. The DTCC listing merely indicates operational readiness, not regulatory clearance.
Did you know? For TDOG, “pay in kind” implies that the sponsor fee is deducted in DOGE instead of cash. Consequently, the Dogecoin backing each share progressively decreases over time, even though the share price continues to mirror Dogecoin’s market value.
DTCC listing is not SEC approval
The appearance of TDOG on the DTCC’s Active and Pre-Launch page indicates that operational setup is in progress.
Brokers and clearing firms can prepare their systems by mapping the ticker, but pre-launch listings are not qualified for DTCC processing yet, and this listing does not permit exchange trading or imply regulatory approval.
TDOG requires two formal approvals from the SEC:
Similar cryptocurrency funds have appeared on the DTCC prior to launch, which reinforces that this step signifies operational readiness (not approval).
How TDOG would track DOGE
If granted approval, the trust would value its holdings using CF Benchmarks’ Dogecoin-Dollar US Settlement Price (a daily benchmark derived from executed trades across various DOGE-USD venues).
This system is designed to be replicable and resistant to manipulation, administered under the UK benchmark regime. The trust calculates its daily NAV based on that price point: During trading hours, the share price may vary around NAV based on supply and demand.
One consideration: The pricing benchmark does not include forks or airdrops. The trust disclaims any airdropped assets and won’t account for forked coins unless specifically supported and distributed, as stated in the prospectus.
In summary, do not anticipate additional value from forks or airdrops being included in the fund.
Did you know? Many ETFs (and commodity trusts) create and redeem in substantial “creation units” handled by authorized participants, often comprising tens of thousands of shares simultaneously. This “plumbing” ensures prices stay near NAV, despite transactions of individual shares.
TDOG vs. buying DOGE directly
Isn’t it simpler to buy DOGE directly? It varies.
If approved, TDOG would provide Dogecoin price exposure via a traditional brokerage account. The trust will hold DOGE, price the shares based on CF Benchmarks’ daily Dogecoin index, and facilitate cash creations/redemptions routed through Coinbase (with Coinbase Custody managing coins in cold storage).
One structural aspect is important for those considering holding: The sponsor fee is deducted in DOGE, which results in a gradual decline of DOGE-per-share over time. Additionally, shares might trade slightly above or below daily NAV during market hours.
The appeal of TDOG is in its convenience and established infrastructure. It behaves like any other ETF — no wallets or seed phrases are needed. Institutional custody is provided, valuation follows a defined rule set, and the creation/redemption process, along with market-maker arbitrage, usually keeps prices near NAV. The fees are transparently disclosed and deducted from the fund’s assets, allowing investors to see the comprehensive cost without dealing with various providers.
However, the trade-offs reflect the other side of that convenience. Due to in-kind fee deductions, extended holding periods will gradually diminish the DOGE supporting each share. Intraday premiums or discounts may also occur.
Buying DOGE directly alters those dynamics. You gain full on-chain control and utility around the clock, without a sponsor fee diminishing your balance.
Conversely, this requires you to manage important responsibilities or face risks from exchanges and platforms if you allow third-party storage, along with the operational burden of managing wallets, transfers, security setups, and fiat onramps. Ultimately, the preferable choice depends on whether you value the simplicity of brokerage accounts or the direct control and on-chain access.
Where TDOG fits alongside DOJE
There is already a trading US Dogecoin product: the REX-Osprey DOGE ETF (DOJE) on Cboe BZX.
This is a 1940-act ETF that aims to deliver approximately 1x DOGE performance (before fees) and may encompass a mix of spot Dogecoin exposure and DOGE-linked instruments. To conform to US regulations and possibly uphold Regulated Investment Company (RIC) tax status, it utilizes a Cayman subsidiary (the “REX-Osprey DOGE Cayman Portfolio”) holding the cryptocurrency exposures.
The expense ratio stands at 1.50%. DOJE was listed on September 18, 2025, launching with exposure to both spot DOGE and the 21Shares DOGE exchange-traded product (ETP), though the specific composition can change over time.
If TDOG receives approval, it would exist alongside DOJE as an alternative wrapper with distinct mechanics:
Structure and venue: TDOG would function as a commodity-based trust directly holding DOGE and list on Nasdaq, utilizing cash creations and redemptions. In contrast, DOJE operates as a 1940-act ETF on Cboe that integrates spot DOGE with DOGE-linked ETPs in its strategy.
Valuation and portfolio: TDOG’s NAV would depend on CF Benchmarks’ daily Dogecoin-dollar settlement price. DOJE seeks Dogecoin exposure through a diversified collection that may incorporate non-US ETPs alongside spot DOGE.
Fees: TDOG’s sponsor fee is yet to be finalized in preliminary filings; DOJE publicizes a 1.5% expense ratio.
Ultimately, DOJE is currently available on Cboe with a stated 1.5% fee and a flexible toolkit for mirroring DOGE.
TDOG is still pending SEC approvals to list as a physically backed trust on Nasdaq. Upon its launch, US investors will have two distinct avenues for DOGE exposure: a grantor-trust model (TDOG) and a 1940-act ETF (DOJE), each with unique fee structures, holding limitations, and operational nuances.
Did you know? A grantor trust (like TDOG) 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 subsidiary) to maintain RIC status.
How to buy TDOG (if/when it lists)
If regulators grant approval for both parts (the S-1 registration and Nasdaq’s 19b-4 rule change), TDOG will commence trading on Nasdaq.
After that:
Find the ticker in your broker: Once firms complete mapping, “TDOG” will be listed alongside other Nasdaq-traded ETFs. Availability may differ by broker and region, and some brokers impose additional checks on commodity-style crypto products.
Use an eligible account: Most standard brokerage accounts accommodate ETFs, but some tax-advantaged or institutional accounts may impose further restrictions. Verify eligibility, margin permissions, and any firm-specific restrictions before funding.
Place the order with care: Initial sessions may have broader spreads and reduced liquidity. Prefer limit orders (as opposed to market orders) and exercise caution around market open and close.
Understand costs: The total cost encompasses the broker’s commission (often zero), the bid-ask spread, and the fund’s ongoing sponsor fee (reflected in performance, rather than charged at the time of purchase). The final prospectus will detail exact fees and creation/redemption information.
After you buy: Trades settle according to 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 cannot be traded. For available DOGE exposure today, consider DOJE on Cboe through your broker. Availability, tax implications, and suitability will depend on your personal circumstances and jurisdiction.
