Grayscale Dogecoin Trust ETF

Previous wording

The following discussion and analysis of our financial condition and results of operations should be read together with, and is qualified in its entirety by reference to, our unaudited financial statements and related notes included elsewhere in this Quarterly Report, which have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The following discussion may contain forward-looking statements based on assumptions we believe to be reasonable. Our actual results could differ materially from those discussed in these forward-looking statements. Factors that could cause or contribute to these differences include, but are not limited to, those set forth under “Part II, Item 1A. Risk Factors” in this Quarterly Report, or in “Part I, Item 1A. Risk Factors” and “Forward-Looking Statements” or other sections of our Annual Report.

Current wording

The following discussion and analysis of our financial condition and results of operations should be read together with, and is qualified in its entirety by reference to, our unaudited financial statements and related notes included elsewhere in this Report, which have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). Unless otherwise stated, the terms “we,” “our” and “us” in this Report refer to Grayscale Investments Sponsors, LLC (the “Sponsor”) acting on behalf of the Trust. Statements preceded by, followed by or that include words such as “may,” “might,” “will,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue,” the negative of these terms and other similar expressions are intended to identify some of the forward-looking statements. All statements (other than statements of historical fact) included in this Report that address activities, events or developments that will or may occur in the future, including such matters as changes in prices and market conditions (for DOGE and the Shares), the operations of the Trust, the plans of the Sponsor and references to the Trust’s future success and other similar matters are forward-looking statements. These statements are only predictions. Actual events or results may differ materially. These statements are based upon certain assumptions and analyses made by the Sponsor on the basis of its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. Whether or not actual results and developments will conform to the Sponsor’s expectations and predictions is subject to a number of risks and uncertainties, including the special considerations discussed in this Report, general economic, market and business conditions, changes in laws or regulations, including those concerning taxes, made by governmental authorities or regulatory bodies, and other world economic and political developments. Consequently, all the forward-looking statements made in this Report are qualified by these cautionary statements, and there can be no assurance that the actual results or developments the Sponsor anticipates will be realized or, even if substantially realized, will result in the expected consequences to, or have the expected effects on, the Trust’s operations or the value of the Shares issued by the Trust. Moreover, neither the Sponsor nor any other person assumes responsibility for the accuracy or completeness of the forward-looking statements. Neither the Trust nor the Sponsor undertakes an obligation to publicly update or conform to actual results any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

Previous wording

The Trust is a passive entity that is managed and administered by the Sponsor and does not have any officers, directors or employees. The Trust holds DOGE and, from time to time on a periodic basis, issues Creation Baskets in exchange for deposits of DOGE. On November 21, 2025, in connection with the approval of the application under the Generic Listing Standards and the effectiveness of the registration statement on Form S-1, the Sponsor authorized the commencement of a redemption program. Shares of the Trust began trading on NYSE Arca on November 24, 2025, following the effectiveness of the Trust’s registration statement on Form S-1. The Trust issues Shares only in one or more blocks of 10,000 Shares (a block of 10,000 Shares is called a “Basket”) to certain Authorized Participants from time to time. Baskets are offered in exchange for DOGE. Through its redemption program, the Trust redeems Shares from Authorized Participants on an ongoing basis. As a passive investment vehicle, the Trust’s investment objective is for the value of the Shares (based on DOGE per Share) to reflect the value of the DOGE held by the Trust, determined by reference to the Index Price, less the Trust’s expenses and other liabilities. While an investment in the Shares is not a direct investment in DOGE, the Shares are designed to provide investors with a cost-effective and convenient way to gain investment exposure to DOGE. The Trust is not managed like a business corporation or an active investment vehicle. The Trust will not utilize leverage, derivatives or any similar arrangements in seeking to meet its investment objective.

Current wording

The Trust is a passive entity that is managed and administered by the Sponsor and does not have any officers, directors or employees. The Trust holds Dogecoin (“DOGE”), a type of digital asset based on an open-source cryptographic protocol, and, from time to time, issues blocks of 10,000 common units of fractional undivided beneficial interest in, and ownership of, the Trust (each such unit, a “Share,” and collectively, the “Shares”; each such block, a “Basket”) to certain eligible financial institutions that are registered broker-dealers, have entered into agreements with the Trust and the Sponsor concerning the creation and redemption of Shares, and each own a digital wallet address that is known to the Custodian as belonging to the financial institution or a Liquidity Provider (each, an “Authorized Participant”) in exchange for deposits of DOGE. On November 21, 2025, in connection with the approval of the application under the Generic Listing Standards and the effectiveness of the registration statement on Form S-1, the Sponsor authorized the commencement of a redemption program. Shares of the Trust began trading on NYSE Arca, Inc. (“NYSE Arca”) on November 24, 2025, following the effectiveness of the Trust’s registration statement on Form S-1. Through its redemption program, the Trust redeems Shares from Authorized Participants on an ongoing basis. As a passive investment vehicle, the Trust’s investment objective is for the value of the Shares (based on DOGE per Share) to reflect the value of the DOGE held by the Trust, determined by reference to the U.S. dollar value of a DOGE derived from the digital asset trading platforms reflected in the CoinDesk Dogecoin Benchmark Rate (the “Index”), calculated at 4:00 p.m., New York time, on each business day (the “Index Price”), less the Trust’s expenses and other liabilities. While an investment in the Shares is not a direct investment in DOGE, the Shares are designed to provide investors with a cost-effective and convenient way to gain investment exposure to DOGE. The Trust is not managed like a business corporation or an active investment vehicle. The Trust will not utilize leverage, derivatives or any similar arrangements in seeking to meet its investment objective.

Previous wording

The Trust considers investment transactions to be the receipt of DOGE by the Trust in connection with Share creations and the delivery of DOGE by the Trust in connection with Share redemptions or for payment of expenses in DOGE. The Trust records its investment transactions on a trade date basis and changes in fair value are reflected as net change in unrealized appreciation or depreciation on investments. Realized gains and losses are calculated using the specific identification method. Realized gains and losses are recognized in connection with transactions including settling obligations for the Sponsor’s Fee in DOGE.

Current wording

The Trust considers investment transactions to be the receipt of DOGE by the Trust in connection with Share creations and the delivery of DOGE by the Trust in connection with Share redemptions or for payment of expenses in DOGE. The Trust records its investment transactions on a trade date basis and changes in fair value are reflected as net change in unrealized appreciation or depreciation on investments. Realized gains and losses are calculated using the specific identification method. Realized gains and losses are recognized in connection with transactions including transfers of DOGE to satisfy the Trust’s obligation to pay the Sponsor a fee that accrues daily in U.S. dollars at an annual rate of 0.35% of the aggregate value of the Trust’s assets, less its liabilities, as calculated and published by the Sponsor, and is payable in DOGE daily in arrears (the “Sponsor’s Fee”).

Previous wording

The Trust only receives DOGE in connection with a creation order from the Authorized Participant (or a Liquidity Provider) and does not itself transact on any Digital Asset Markets. Therefore, the Trust looks to market-based volume and level of activity for Digital Asset Markets. The Authorized Participant(s), or a Liquidity Provider, may transact in a Brokered Market, a Dealer Market, Principal-to-Principal Markets and Exchange Markets (referred to as “Trading Platform Markets” in this Quarterly Report), each as defined in the FASB ASC Master Glossary (collectively, “Digital Asset Markets”).

Current wording

The Trust receives DOGE only in connection with a creation order from an Authorized Participant or an unaffiliated service provider that facilitates the purchase or sale of DOGE in connection with creations or redemptions of Baskets (a “Liquidity Provider”) and does not itself transact on any Digital Asset Markets. Therefore, the Trust looks to market-based volume and level of activity for Digital Asset Markets. Authorized Participants and Liquidity Providers may transact in Digital Asset Markets.

Previous wording

Financial Highlights for the Three Months Ended June 30, 2026 and 2025, the Six Months Ended June 30, 2026 and the Period from January 30, 2025 (the Commencement of the Trust’s Operations) to June 30, 2025

Current wording

Financial Highlights for the Three Months Ended September 30, 2026 and 2025, the Nine Months Ended September 30, 2026 and the Period from January 30, 2025 (the Commencement of the Trust’s Operations) to September 30, 2025

Previous wording

Net assets in the above table and subsequent paragraphs are calculated in accordance with U.S. GAAP based on the Digital Asset Market price of DOGE on the Digital Asset Trading Platform that the Trust considered its principal market, as of 4:00 p.m., New York time, on the valuation date.

Current wording

Net assets in the above table and subsequent paragraphs are calculated in accordance with U.S. GAAP based on the Digital Asset Market price of DOGE on an electronic marketplace where participants may trade, buy and sell DOGE based on bid-ask trading (a “ Digital Asset Trading Platform”) that the Trust considered its principal market, as of 4:00 p.m., New York time, on the valuation date.

Previous wording

Net realized and unrealized gain on investment in DOGE for the three months ended June 30, 2025 was $22, which includes a realized loss of ($4) on the transfer of DOGE to pay the Sponsor’s Fee and net change in unrealized appreciation/depreciation on investment in DOGE of $26. Net realized and unrealized gain on investment in DOGE for the period was driven by DOGE price appreciation from $0.17 per DOGE as of March 31, 2025, to $0.17 per DOGE as of June 30, 2025. Net increase in net assets resulting from operations was $10 for the three months ended June 30, 2025, which consisted of the net realized and unrealized gain on investment in DOGE, less the net investment loss of $12. Net assets increased to $1,885 at June 30, 2025, a 2% increase for the three-month period. The increase in net assets resulted from the aforementioned DOGE price appreciation and the contribution of approximately 149,027 DOGE with a value of $24 to the Trust in connection with Share creations during the period, partially offset by the withdrawal of approximately 69,965 DOGE to pay the foregoing Sponsor’s Fee.

Current wording

Net realized and unrealized gain for the three months ended September 30, 2026 was $2,076, which includes a realized loss of ($5) on the transfer of DOGE to pay expenses, a realized loss of ($1,361) on the sale of DOGE to meet redemptions, and net change in unrealized appreciation/depreciation of $3,442. Net realized and unrealized gain for the period was driven by DOGE price appreciation from $0.07 per DOGE as of June 30, 2026, to $0.09 per DOGE as of September 30, 2026. Net increase in net assets resulting from operations was $2,068 for the three months ended September 30, 2026, which consisted of the net realized and unrealized gain, and the net investment loss of ($8). Net assets increased to $13,616 at September 30, 2026, a 79% increase for the three-month period. The increase in net assets resulted from the aforementioned DOGE price appreciation and the contribution of approximately 66,894,527 DOGE with a value of $6,148 to the Trust in connection with Share creations during the period, partially offset by the withdrawal of approximately 91,675 DOGE to pay the foregoing Sponsor’s Fee, and the redemption of approximately 27,000,588 DOGE with a value of $2,185 from the Trust.

Previous wording

Net realized and unrealized loss on investment in DOGE for the period from January 30, 2025 (the commencement of the Trust’s operations) to June 30, 2025 was ($881), which includes a realized loss of ($6) on the transfer of DOGE to pay the Sponsor’s Fee and net change in unrealized appreciation/depreciation on investment in DOGE of ($875). Net realized and unrealized loss on investment in DOGE for the period was driven by DOGE price depreciation from $0.33 per DOGE as of January 30, 2025 (the commencement of the Trust’s operations), to $0.17 per DOGE as of June 30, 2025. Net decrease in net assets resulting from operations was ($901) for the period from January 30, 2025 (the commencement of the Trust’s operations) to June 30, 2025, which consisted of the net realized and unrealized loss on investment in DOGE, plus the net investment loss of $20. Net assets increased to $1,885 at June 30, 2025. The increase in net assets resulted from the contribution of approximately 11,353,765 DOGE with a value of $2,786 to the Trust in connection with Share creations during the period, partially offset by the aforementioned DOGE price depreciation and the withdrawal of approximately 106,696 DOGE to pay the foregoing Sponsor’s Fee.

Current wording

Net realized and unrealized loss for the period from January 30, 2025 (the commencement of the Trust’s operations) to September 30, 2025 was ($150), which includes a realized loss of ($8) on the transfer of DOGE to pay expenses and net change in unrealized appreciation/depreciation of ($142). Net realized and unrealized loss for the period was driven by DOGE price depreciation from $0.33 per DOGE as of January 30, 2025 (the commencement of the Trust’s operations), to $0.23 per DOGE as of September 30, 2025. Net decrease in net assets resulting from operations was ($186) for the period from January 30, 2025 (the commencement of the Trust’s operations) to September 30, 2025, which consisted of the net realized and unrealized loss, and the net investment loss of ($36). Net assets increased to $2,600 at September 30, 2025. The increase in net assets resulted from the contribution of approximately 11,353,766 DOGE with a value of $2,786 to the Trust in connection with Share creations during the period, partially offset by the aforementioned DOGE price depreciation and the withdrawal of approximately 177,348 DOGE to pay the foregoing Sponsor’s Fee.

Previous wording

The Trust only receives and holds cash in order to facilitate creations and redemptions pursuant to Cash Orders, and has not otherwise had or maintained a cash balance at any time since inception. When selling DOGE in the Digital Asset Market to pay Additional Trust Expenses on behalf of the Trust, the Sponsor endeavors to sell the exact amount of DOGE needed to pay expenses in order to minimize the Trust’s holdings of assets other than DOGE. In addition, upon the consummation or deemed failure of a Cash Order to create or redeem Baskets, the Trust will promptly return any excess cash it continues to hold with respect to such Cash Order to the applicable counterparty. As a consequence, the Sponsor expects that the Trust will not record any cash flow from its operations and that its cash balance will be zero at the end of each reporting period. Furthermore, the Trust is not a party to any off-balance sheet arrangements.

Current wording

The Trust only receives and holds cash in order to facilitate creation or redemption orders effected through cash transactions (“Cash Orders”) and has not otherwise had or maintained a cash balance at any time since inception. When selling DOGE in the Digital Asset Market on behalf of the Trust to pay expenses incurred by the Trust in addition to the Sponsor’s Fee that the Sponsor is not obligated to assume, the Sponsor endeavors to sell the exact amount of DOGE needed to pay expenses in order to minimize the Trust’s holdings of assets other than DOGE. In addition, upon the consummation or deemed failure of a Cash Order to create or redeem Baskets, the Trust will promptly return any excess cash it continues to hold with respect to such Cash Order to the applicable counterparty. As a consequence, the Sponsor expects that the Trust will not record any cash flow from its operations and that its cash balance will be zero at the end of each reporting period. Furthermore, the Trust is not a party to any off-balance sheet arrangements.

Previous wording

In exchange for the Sponsor’s Fee, the Sponsor has agreed to assume most of the expenses incurred by the Trust. As a result, the only ordinary expense of the Trust during the periods covered by this Quarterly Report was the Sponsor’s Fee.

Current wording

In exchange for the Sponsor’s Fee, the Sponsor has agreed to assume most of the expenses incurred by the Trust. As a result, the only ordinary expense of the Trust during the periods covered by this Report was the Sponsor’s Fee.

Previous wording

The Sponsor, from time to time, may temporarily waive all or a portion of the Sponsor’s Fee of the Trust in its discretion for stated periods of time. Effective November 24, 2025, the Sponsor determined to waive a portion of the Sponsor’s Fee until the earlier of (x) February 25, 2026 and (y) the first date on which the NAV of the Trust exceeds $1.0 billion (such period, the “Fee Waiver Period”). Following the expiration date of the three-month waiver period on February 25, 2026 (the “Sponsor’s Fee Waiver Expiration Date”), the Sponsor’s Fee is 0.35%.

Current wording

The Sponsor, from time to time, may temporarily waive all or a portion of the Sponsor’s Fee of the Trust in its discretion for stated periods of time. Effective November 24, 2025, the Sponsor determined to waive a portion of the Sponsor’s Fee until the earlier of (x) February 25, 2026 and (y) the first date on which the NAV of the Trust exceeds $1.0 billion. The three-month waiver expired on February 25, 2026, and the Sponsor’s Fee thereafter is 0.35%.