What is TDOG, and how does it work?
21Shares’ Dogecoin exchange-traded fund (ETF), TDOG, has recently been listed on the DTCC’s Active and Pre-Launch list under the ticker TDOG. This listing facilitates connections between brokers and clearing institutions in anticipation of potential trading, although it does not signify regulatory approval.
The TDOG/21Shares Dogecoin (DOGE) trust is designed to be physically backed (holding Dogecoin directly) and aims to issue shares that track DOGE’s price (less fees).
The fund determines its daily net asset value (NAV) using a multi-exchange Dogecoin price index. It also publishes an intraday indicative value approximately every 15 seconds during market hours, enabling traders to see how the shares compare to the underlying asset.
Creations and redemptions usually occur in cash.
Authorized participants (AP) typically provide cash, after which the sponsor instructs the prime broker (Coinbase) to either purchase DOGE or utilize existing holdings, transferring them to Coinbase Custody Trust Company for safekeeping.
The reverse process applies to redemptions. Arbitrage conducted by APs and market makers generally helps maintain the share price in line with NAV, although small intraday premiums or discounts may still arise, particularly during volatile or low liquidity periods.
Two points worth noting:
Fees are paid in kind, meaning the amount of DOGE per share will gradually decrease over time as sponsor fees are deducted.
Until the US Securities and Exchange Commission approvals are granted, TDOG will not be available for trading. The DTCC listing signifies operational readiness, not regulatory clearance.
Did you know? For TDOG, “pay in kind” indicates that the sponsor fee is deducted in DOGE rather than cash. Consequently, the amount of Dogecoin supporting each share diminishes over time, even as the share price continues to reflect Dogecoin’s market value.
DTCC listing is not SEC approval
Seeing TDOG on DTCC’s Active and Pre-Launch page simply implies that operational arrangements are in progress.
Brokers and clearing firms can set up their systems in advance for the ticker, but pre-launch listings are not yet eligible for DTCC processing, and this presence does not authorize trading on an exchange or indicate regulatory approval.
TDOG still requires two formal approvals from the SEC:
Similar crypto funds have appeared on DTCC prior to launch, which is why this step should be interpreted as operational readiness (not approval).
How TDOG would track DOGE
If granted approval, the trust would assess its holdings using CF Benchmarks’ Dogecoin-Dollar US Settlement Price (a daily benchmark derived from executed trades across various eligible DOGE-USD venues).
The system is structured to be replicable and resistant to manipulation, and it operates under the UK benchmark regime. The trust calculates its daily NAV based on this price; during the trading day, the share price may fluctuate around the NAV due to supply and demand factors.
One subtlety: The pricing benchmark excludes forks or airdrops. According to the prospectus, the trust disclaims any airdropped assets and won’t account for forked coins unless they are specifically supported and distributed.
In essence, do not anticipate extra value from forks or airdrops to be represented in the fund.
Did you know? Many ETFs (and commodity trusts) create and redeem large “creation units” through authorized participants, often amounting to tens of thousands of shares at once. This “plumbing” is essential to keeping prices close to NAV, even when single shares are traded.
TDOG vs. buying DOGE directly
Wouldn’t it be easier to purchase DOGE outright? It depends.
If approved, TDOG would provide exposure to Dogecoin’s price via a traditional brokerage account. The trust holds DOGE, values the shares using CF Benchmarks’ once-daily Dogecoin index, and processes cash creations/redemptions through Coinbase (with Coinbase Custody managing the coins in cold storage).
As previously mentioned, a structural factor is crucial for those intending to hold: The sponsor fee is taken in DOGE, so the DOGE per share will gradually decline over time. Shares can also trade slightly above or below daily NAV during market hours.
The advantage of TDOG lies in its convenience and established infrastructure. It functions like any other ETF — no wallets or seed phrases needed. Custody is institutional, valuation adheres to a published rule set, and the creation/redemption procedure, along with market-maker arbitrage, generally keeps prices near NAV. The fee is transparently disclosed and deducted from the fund’s assets, enabling investors to understand the total cost without needing multiple providers.
However, these conveniences come with trade-offs. Since fees are paid in kind, longer holding periods gradually lessen the amount of DOGE backing each share. Intraday premiums or discounts may also occur.
Additionally, you must depend on counterparties, including the prime broker, custodian, and index administrator, and you forfeit on-chain utility since you cannot tip, spend, or interact with Dogecoin directly through an ETF.
Purchasing DOGE directly alters these dynamics. You gain complete on-chain control and 24/7 utility without a sponsor fee diminishing your balance.
In exchange, you assume key management responsibilities or face exchange and platform risks if you store coins with a third party, along with the operational burden of managing wallets, transfers, security setups, and fiat onramps. The optimal choice ultimately hinges on whether you value the simplicity of a brokerage account or the 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.
This ETF, structured under the 1940 act, aims to deliver approximately 1x DOGE performance (before fees) and may hold a mix of spot Dogecoin exposure and DOGE-linked instruments. To comply with US regulations and possibly retain Regulated Investment Company (RIC) tax status, it is organized via a Cayman subsidiary (the “REX-Osprey DOGE Cayman Portfolio”) that encompasses the cryptocurrency exposures.
The expense ratio is set at 1.50%. DOJE was listed on September 18, 2025, and launched with exposure to both spot DOGE and the 21Shares DOGE exchange-traded product (ETP), although the exact composition may evolve over time.
If TDOG gains approval, it would operate alongside DOJE as a distinct product with different mechanisms:
Structure and venue: TDOG would be a commodity-based trust holding DOGE directly, listing on Nasdaq, with cash creations and redemptions. In contrast, DOJE is a 1940-act ETF on Cboe that amalgamates spot DOGE with DOGE-linked ETPs within its framework.
Valuation and portfolio: TDOG’s NAV would rely on CF Benchmarks’ once-daily Dogecoin-dollar settlement price, while DOJE pursues Dogecoin exposure through a diversified basket that may include non-US ETPs along with spot DOGE.
Fees: TDOG’s sponsor fee remains to be finalized in the preliminary filings; DOJE explicitly states a 1.5% expense ratio.
In summary, DOJE is currently available on Cboe with a published 1.5% fee and a versatile toolkit to replicate DOGE.
TDOG is still awaiting SEC approvals to operate as a physically backed trust on Nasdaq. Should it launch, US investors will have two distinct avenues for DOGE exposure: a grantor-trust model (TDOG) and a 1940-act ETF (DOJE), each exhibiting its own fee structure, holding limits, and operational trade-offs.
Did you know? A grantor trust (like TDOG could be) and a 1940-act ETF (like DOJE) fall under different tax and portfolio regulations: The trust delivers direct asset exposure, while the ETF can utilize baskets (and even a Cayman subsidiary) to uphold RIC status.
How to buy TDOG (if/when it lists)
If regulators greenlight both components (the S-1 registration and Nasdaq’s 19b-4 rule change), TDOG will commence trading on Nasdaq.
After that:
Find the ticker in your brokerage: Once firms complete mapping, “TDOG” will be listed alongside other Nasdaq-listed ETFs. Availability may differ by broker and region, with some firms implementing additional checks on commodity-style crypto products.
Use a qualified account: Most standard brokerage accounts support ETFs, but certain tax-advantaged or institutional accounts may impose extra restrictions. Verify eligibility, margin permissions, and any firm-level constraints prior to funding.
Place orders with caution: Initial trading sessions may exhibit wider spreads and lower liquidity. Favor limit orders (over market orders) and be mindful around the market open and close.
Understand your costs: Your overall expense comprises the broker’s commission (often zero), the bid-ask spread, and the fund’s ongoing sponsor fee (reflected in performance, not charged at the point of sale). The final prospectus will detail fees and creation/redemption processes.
After the purchase: Trades settle according to the standard US equity cycle. You can monitor TDOG during market hours and compare its price to the issuer-reported NAV updates.
Until approvals are finalized, TDOG is not available for trading. For those seeking listed DOGE exposure today, consider exploring DOJE on Cboe through your broker. Availability, tax implications, and suitability are contingent on your specific jurisdiction and individual circumstances.
