21Shares Dogecoin ETF Annual Report: Fiscal Year Ended September 30, 2025

This report provides a foundational overview of the 21Shares Dogecoin ETF (TDOG), traded on the Nasdaq Stock Market LLC. While the ETF had no operational performance to report for its initial fiscal year ending September 30, 2025, understanding its structure, objectives, and key risks is essential for any investor.

Fiscal Year 2025: The Launchpad

The 21Shares Dogecoin ETF was established on April 1, 2025, and officially adopted its current name on April 7, 2025. During this fiscal year, the ETF focused on its pre-operational stage, setting the stage for its public launch.

Key Financial Highlights for FY2025:

• Initial Capital: On September 17, 2025, the Sponsor, 21Shares US LLC, purchased 2 initial shares for $50 each, totaling $100. This $100 represented the ETF's sole asset and capital at the fiscal year-end.
• Operational Activity: The ETF conducted no other operational activities, generated no revenue, and incurred no expenses during this period.
• Trading Launch: Public trading of TDOG shares began after the fiscal year-end, on January 22, 2026. Therefore, the financial statements for this period primarily reflect its initial capitalization, not ongoing operations.

Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)

For the fiscal year ended September 30, 2025, the Trust was in its organizational and formation stage. Its primary financial activity involved the Sponsor's initial capitalization of $100 for 2 shares. As of September 30, 2025, these shares constituted the Trust's entire assets. The Trust recorded no operational revenues or expenses during this period, as public trading of its shares commenced after the fiscal year-end. Consequently, we have no operational results to discuss for this reporting period.

Financial Health (Liquidity and Capital Resources): The Sponsor's initial purchase established the Trust's capital. The Trust does not incur debt in its operations. Once trading begins, the Trust will manage its liquidity primarily through a continuous creation and redemption mechanism involving Authorized Participants. This mechanism ensures that the market price of the shares closely tracks the Net Asset Value (NAV) and facilitates efficient capital flow into and out of the Trust. The Trust will pay future operational expenses, including the Sponsor Fee, in Dogecoin. It will acquire this Dogecoin by selling a small portion of its Dogecoin holdings or through cash contributions from Authorized Participants during creation events. The Sponsor's agreement to cover most regular operating costs out of the Sponsor Fee further enhances the Trust's financial stability by providing a predictable expense structure.

Investment Objective and Strategy (Business Overview)

The 21Shares Dogecoin ETF's core mission is to offer investors a straightforward, cost-effective way to gain exposure to Dogecoin.

• Objective: The ETF aims to track Dogecoin's performance, specifically by mirroring the "CF Dogecoin-Dollar US Settlement Price Index," after accounting for its operational expenses. This index reflects Dogecoin's fair market value in U.S. dollars, calculated from prices on major Dogecoin exchanges.
• Strategy: TDOG employs a passive investment strategy. It achieves its objective by directly holding Dogecoin. The ETF does not engage in active trading of Dogecoin, nor does it use derivatives or leverage. Its value directly correlates with the price movements of the underlying Dogecoin it holds.
• Creation and Redemption: To keep its market price aligned with its Net Asset Value (NAV), the ETF uses a creation and redemption mechanism. Authorized Participants (typically large financial institutions) can create new blocks of shares by delivering Dogecoin to the ETF, or redeem shares for Dogecoin. This process helps ensure liquidity and efficient price discovery.

Key Service Providers (Business Overview)

The ETF relies on a network of specialized service providers to operate securely and efficiently:

• Sponsor: 21Shares US LLC manages and controls the ETF's operations.
• Trustee: Wilmington Trust, N.A. oversees the Trust's activities on behalf of shareholders.
• Dogecoin Custodians: Coinbase Custody Trust Company, LLC, BitGo Bank & Trust, N.A., and Anchorage Digital Bank N.A. securely hold the ETF's Dogecoin. They primarily use cold storage solutions, which store Dogecoin offline to minimize hacking risks.
• Administrator & Transfer Agent: The Bank of New York Mellon handles the ETF's administrative tasks, including NAV calculation, accounting, and managing share transfers.
• Execution Agent: Coinbase, Inc. facilitates the buying and selling of Dogecoin for the ETF, particularly during share creation and redemption, and for managing operational expenses.

Fees and Expenses (Business Overview)

• Sponsor Fee: The ETF charges an annual "Sponsor Fee" of 0.50% of its Net Asset Value (NAV). This fee accrues daily and is paid weekly in Dogecoin to 21Shares US LLC.
• Expense Coverage: The Sponsor has agreed to cover most of the ETF's regular operating costs out of this 0.50% fee, a significant benefit for investors. This includes crucial expenses such as custody fees, administration and transfer agency fees, marketing expenses, legal and audit fees, and other operational costs. This structure aims to provide investors with a clear and predictable cost.

Important Risk Factors for Investors

Investing in the 21Shares Dogecoin ETF involves significant risks, including:

• Dogecoin Price Volatility: Dogecoin is a highly volatile digital asset. Its price can fluctuate dramatically and rapidly due to market sentiment, regulatory changes, technological developments, and broader cryptocurrency market trends. Investors could lose a substantial portion or all of their investment.
• Custody Risk: While multiple reputable custodians are used, Dogecoin's security relies on sophisticated cryptographic systems and physical security measures. There is always a risk of loss, theft, or hacking of the underlying Dogecoin, which could severely impact the ETF's value.
• Regulatory Risk: The regulatory landscape for cryptocurrencies, including Dogecoin and crypto ETFs, is evolving and uncertain. New regulations or enforcement actions could negatively impact Dogecoin's value or the ETF's operations.
• Market Liquidity Risk: The Dogecoin market can experience periods of illiquidity, making it difficult for the ETF to acquire or dispose of Dogecoin efficiently. This could affect its ability to track the index accurately.
• Dependence on Service Providers: The ETF relies on third-party service providers for custody, administration, and execution. Failure or disruption of these services could adversely affect the ETF.
• "Meme Coin" Status: Dogecoin's value is heavily influenced by social media trends and community sentiment, making it particularly susceptible to speculative bubbles and rapid price declines.

Competitive Position

The market for investment products offering exposure to digital assets, including Dogecoin, is both evolving and highly competitive. The Trust competes with various existing and potential investment vehicles. These include other exchange-traded products (ETPs) that may track Dogecoin or other digital assets, private funds, and direct investments in Dogecoin through digital asset exchanges or brokers.

The Trust's competitive advantages are expected to include its structure as a U.S. spot Dogecoin ETF, offering regulated access and potentially greater liquidity compared to some alternative investment options. However, competition may intensify if other sponsors introduce similar products. This could impact the Trust's market share, trading volume, and ability to attract assets. The Trust's ability to compete effectively will depend on factors such as its expense ratio, brand recognition, and the overall market demand for regulated Dogecoin investment products.

Emerging Growth Company Status

The 21Shares Dogecoin ETF qualifies as an "emerging growth company" under U.S. securities laws. This status provides certain reporting accommodations, meaning it may:

• Provide less detailed financial disclosures than larger, more established public companies.
• Be exempt from certain auditor attestation requirements.
• Have an extended transition period for complying with new or revised accounting standards.

This status is temporary and will cease on the earliest of: (1) the last day of the fiscal year in which its total annual gross revenues exceed $1.235 billion; (2) the last day of the fiscal year of the fifth anniversary of its initial public offering (January 22, 2031); (3) the date on which it has issued more than $1 billion in non-convertible debt in the prior three-year period; or (4) the date on which it becomes a "large accelerated filer." Investors should be aware of these reduced reporting requirements when evaluating the ETF.

Looking Ahead (Future Outlook)

For the fiscal year ending September 30, 2025, the 21Shares Dogecoin ETF successfully established its legal and operational framework during its initial formation phase. With shares commencing trading in January 2026, future reports will provide actual performance data, reflecting its ability to track the Dogecoin price, net of fees and expenses. The Trust's strategy remains focused on providing direct, passive exposure to Dogecoin. Investors are encouraged to review the full prospectus and future filings for comprehensive details.