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- Dogecoin ETF TDOG files amendment, moving closer to Nasdaq launch.
- The 0.50% fee offers investors an affordable entry to Dogecoin exposure.
- Cryptocurrency gains 8.72%, fueled by strong trading volume and investor interest.
21Shares has filed an amendment for its spot Dogecoin exchange-traded fund (ETF) in the U.S., taking a step closer to launching the product. The amendment, filed on December 2, reveals key details about the ETF’s fee structure and operations. The fund, expected to trade under the ticker TDOG on Nasdaq, will hold Dogecoin and track its price without leverage or active trading.
The filing outlines a sponsor fee of 0.50% of the net asset value. This fee will be charged daily and paid weekly in Dogecoin. It covers operational costs such as custody, administration, marketing, trustee duties, and regular legal and audit expenses. If extraordinary costs arise, such as taxes or lawsuits, the trust will need to sell Dogecoin to cover them.
Impact of New Dogecoin ETFs on Market Value
The creations and redemptions will incur transaction costs to authorized participants, which can be changed by the sponsor with notice. The 0.50% fee ranks TDOG at the midpoint of the pack compared with the other spot crypto ETFs. It offers a simple, cheap method by which investors can become exposed to Dogecoin by utilizing a regulated product.
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This action is in line with a recent movement in Dogecoin investment products. On November 20, 21Shares launched a 2x Dogecoin ETF to trade on Nasdaq, which targets traders with high exposure to Dogecoin price changes. On November 24, Grayscale also changed its Dogecoin trust into a spot ETF with a lower fee. These launches have contributed to driving the value of Dogecoin up.
Dogecoin Sees $1.78 Billion in Trading Volume
At press time, Dogecoin is trading at $0.1499, having gained 8.72% over the last 24 hours. The cryptocurrency has experienced the highest trading volume of more than $1.78 billion, the highest in weeks. According to analysts, the new surge of investment is attributed to the moves by retail investors as well as hedge funds into high-volatility assets at the end of the year.
TDOG will take a step forward to its debut with the fee structure known to everyone. Nonetheless, the launch of the ETF will be subject to the continued consideration by the U.S. Securities and Exchange Commission (SEC). The time of approving is not clear.
Also Read: Grayscale Chainlink Trust Wins Approval as LINK ETF Set to Begin Trading Tuesday
