A groundbreaking proposal to list the 21Shares Dogecoin ETF is being charged into the future by Nasdaq, with unprecedented access to DOGE being unlocked through mainstream brokerage channels.
A proposal was filed by Nasdaq on April 28 with the U.S. Securities and Exchange Commission (SEC) to list and trade shares of the 21Shares Dogecoin exchange-traded fund (ETF). The ETF, to be managed by 21Shares US LLC, aims to provide investors with indirect access to DOGE through a traditional brokerage account.
According to the filing, the Trust is structured as a passive investment vehicle and will not use leverage, derivatives, or speculative trading strategies. The performance of dogecoin will be tracked using the CF DOGE-Dollar US Settlement Price Index. The document states:
The Trust’s investment objective is to seek to track the performance of dogecoin, as measured by the Pricing Benchmark, adjusted for the Trust’s expenses and other liabilities.
It is highlighted in the filing that actual dogecoin will be held by the Trust, with Coinbase Custody Trust Company LLC being designated as the custodian. Shares will be created and redeemed solely with cash through authorized participants, who will not interact directly with DOGE. Instead, the purchase or sale of dogecoin in connection with share creations and redemptions will be handled by a designated third party, referred to as a “Dogecoin Counterparty.”
It is explained in the filing that only cash will be delivered by Authorized Participants to create shares, and only cash will be received when redeeming shares. The trust further clarifies that any incidental right (‘IR’) or IR asset received, such as from forks or airdrops, will not be acquired and will be disclaimed, ensuring pure exposure to DOGE without speculative elements.
It is also emphasized in the filing that Nasdaq’s readiness to meet regulatory standards is ensured through robust surveillance mechanisms, with the following statement:
The exchange believes that its surveillance procedures are adequate to properly monitor the trading of the shares on the exchange during all trading sessions and to deter and detect violations of exchange rules and the applicable federal securities laws.
To support surveillance, Nasdaq has a comprehensive information-sharing agreement with Coinbase Derivatives, a member of the Intermarket Surveillance Group. The proposed ETF will only begin trading after the SEC declares the related registration statement effective. If approved, the 21Shares Dogecoin ETF would join recent approvals for bitcoin and ether spot-based exchange-traded products, marking another major expansion for crypto-based investment vehicles in traditional financial markets.
