10-Q: 21Shares Dogecoin ETF Reports NAV Decline Amidst Dogecoin Price Drop

The 21Shares Dogecoin ETF (TDOG) reported a decrease in Net Asset Value (NAV) per Share by 21.67% for the quarter ended June 30, 2026, despite an overall increase in total NAV due to share creations.

Summary

• The 21Shares Dogecoin ETF (TDOG) filed its quarterly report for the period ended June 30, 2026.
• The Trust's Net Asset Value (NAV) increased from $1,855,458 to $2,761,536 during the three months ended June 30, 2026, primarily due to the creation of 90,000 Shares.
• However, the NAV per Share decreased by 21.67% from $18.55 to $14.53 over the same period.
• This decline in NAV per Share was largely driven by a 22.22% decrease in the price of Dogecoin.
• For the nine months ended June 30, 2026, the NAV per Share declined by 43.37% from $25.66 to $14.53, with Dogecoin price decreasing by 41.67%.
• The Trust experienced a net decrease in net assets from operations of $(848,081) for the three months and $(1,484,774) for the nine months ended June 30, 2026.
• The primary driver of this decrease was a significant unrealized depreciation on the investment in Dogecoin.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative sentiment due to the significant unrealized depreciation in Dogecoin value and the decline in NAV per Share, despite an increase in total NAV from share creations.

Positives

• The total Net Asset Value (NAV) of the Trust increased from $1,855,458 to $2,761,536 for the three months ended June 30, 2026.
• This increase in total NAV was driven by the creation of 90,000 Shares during the quarter, indicating investor interest.
• For the nine months ended June 30, 2026, the total NAV increased from $1,539,463 to $2,761,536, with 130,000 Shares created.
• The Sponsor has agreed to pay all ordinary operating expenses out of the Sponsor Fee, which is 0.50% of the Trust's NAV.

Negatives

• The Net Asset Value (NAV) per Share declined by 21.67% to $14.53 for the three months ended June 30, 2026.
• The NAV per Share declined by 43.37% to $14.53 for the nine months ended June 30, 2026.
• There was a significant unrealized depreciation on the investment in Dogecoin, amounting to $(843,282) for the three months and $(1,477,880) for the nine months ended June 30, 2026.
• The price of Dogecoin decreased by 22.22% during the three months ended June 30, 2026, and by 41.67% during the nine months ended June 30, 2026.

Risks

• The Trust's investment strategy is concentrated in a single asset (Dogecoin) within a single asset class, maximizing exposure to market risks associated with Dogecoin and digital assets.
• Losses resulting from a decrease in the value of Dogecoin will not be offset by gains from diversified underlying assets.
• Forward-looking statements are subject to numerous risks and uncertainties, including changes in laws or regulations, and general economic, market, and business conditions, which could cause actual results to differ materially.
• The termination of the licensing agreement with the current Pricing Benchmark Provider (CF Benchmarks Ltd.) and the transition to FTSE index data could introduce unforeseen impacts, although management states it is not expected to be material.

Future Outlook

The Trust's investment objective is to track the performance of Dogecoin, adjusted for expenses. The Sponsor intends to enter into a new licensing agreement with FTSE for index data by August 24, 2026, following the termination of the current agreement with CF Benchmarks Ltd. effective August 31, 2026. This change is not expected to materially impact the Trust's NAV or operations.

Management Comments

• "The Trust is an exchange-traded fund (ETF) that issues common shares of beneficial interest (the Shares) representing fractional undivided beneficial interests in its net assets that trade on the Nasdaq Stock Market LLC (the Exchange)."
• "Accordingly, the change in pricing benchmark provider is not expected to have a material impact on the Trust's net asset value, the fair value measurement of the Trust's Dogecoin, or the Trust's results of operations, and does not represent a change in accounting principle."
• "In the opinion of management of the Sponsor of the Trust, all adjustments (which include normal recurring adjustments) necessary to present fairly the financial position and results of operations for the period ended June 30, 2026, and for all interim periods presented have been included."

Industry Context

StockSavvy.ai notes that the performance of the 21Shares Dogecoin ETF is directly tied to the volatile price movements of Dogecoin. The broader digital asset market has experienced significant fluctuations, and ETFs tracking specific cryptocurrencies are subject to these inherent risks. The transition to a new pricing benchmark provider is a notable operational event for such a specialized ETF.

Comparison to Industry Standards

• The 21Shares Dogecoin ETF's performance is benchmarked against Dogecoin's price, as measured by the CF Dogecoin-Dollar US Settlement Price Index (soon to be FTSE index data).
• Unlike diversified ETFs, this fund's strategy is concentrated solely on Dogecoin, meaning its performance is entirely dependent on that single digital asset.
• The NAV per Share decline of 21.67% in Q2 2026 and 43.37% over nine months is significant, reflecting the high volatility characteristic of individual cryptocurrency assets.
• Competitors in the digital asset ETF space, such as those tracking Bitcoin or Ethereum, also face similar challenges related to asset price volatility and regulatory scrutiny.

Legal Proceedings

• As of June 30, 2026, the Trust was not subject to any material legal proceedings, nor are any material legal proceedings threatened against the Trust.

Related Party Transactions

• The Sponsor, 21Shares US LLC, is a related party to the Trust.
• As of June 30, 2026, the Sponsor owned 60,000 Shares of the Trust.
• The Sponsor purchased Seed Creation Baskets comprising 60,000 Shares at $25.66 per Share on January 21, 2026.
• The Trust pays a unitary Sponsor Fee of 0.50% of the Trust's NAV to the Sponsor for services.

Stakeholder Impact

• Shareholders have experienced a decline in the Net Asset Value (NAV) per Share, indicating a decrease in the value of their investment in Dogecoin.
• The concentration risk in Dogecoin means that any adverse price movement directly impacts shareholder value without diversification benefits.
• The Sponsor, as the manager and fee recipient, continues to earn its fee based on NAV, even as the NAV per Share declines.

Next Steps

• The Sponsor intends to enter into a licensing agreement with FTSE on or about August 24, 2026, for index data.
• The termination of the licensing agreement with CF Benchmarks Ltd. is effective August 31, 2026.
• The Trust will continue to track the performance of Dogecoin, adjusted for expenses.

Key Dates

Recommendation

The filing indicates significant unrealized depreciation in Dogecoin and a decline in NAV per Share, suggesting negative performance. However, the total NAV has increased due to share creations, implying continued investor interest. The concentration risk and volatility of Dogecoin present substantial downside. Given the mixed signals of declining per-share value alongside capital inflows, a 'hold' recommendation is prudent, pending further market developments and potential stabilization of Dogecoin's price.

Keywords

Dogecoin ETF, Digital Asset, Cryptocurrency, Exchange Traded Fund, NAV, Investment Performance, SEC Filing, Quarterly Report