21Shares is consolidating the shares of its leveraged Dogecoin exchange-traded fund after the product’s per-share value moved into the low-single-digit range, setting a 1-for-10 reverse split for the 21Shares 2x Long Dogecoin ETF, or TXXD. The issuer announced the action on September 3, saying the Board of Trustees of Listed Funds Trust had approved the change and that it would become effective after the close of trading on the Nasdaq Stock Market on September 4.

Under the transaction, every 10 existing TXXD shares will automatically be converted into one new share. The number of issued and outstanding shares will consequently fall by approximately 90%, while the fund’s net asset value per share and its subsequent opening market price are expected to increase by approximately a factor of 10. Split-adjusted trading is scheduled to start on September 8. The fund will retain the ticker TXXD, although its CUSIP identifier will change from 53656G175 to 53656H553.

The reverse split does not represent a change in the size of an investor’s economic position solely because of the consolidation. It reduces the number of shares representing that position while increasing the value assigned to each remaining share proportionately. In the example provided by 21Shares, an investor owning 1,000 shares at a hypothetical $10 NAV before the split would own 100 shares at a hypothetical $100 NAV afterward, leaving the position worth $10,000 in either case before considering subsequent market movements.

The distinction is especially relevant because a reverse split can produce a dramatic-looking change in the quoted price of an ETF even though it does not create an investment return. TXXD will not become ten times more valuable as a fund when its per-share price is mechanically multiplied. Its assets, liabilities and strategy remain tied to the same portfolio, subject to normal trading, derivatives valuation, creations and redemptions and movements in Dogecoin-related instruments.

Recent fund data illustrate the scale of the adjustment. As of September 2, 21Shares reported TXXD with a NAV of $3.80 per share, net assets of approximately $4.21 million and 1.11 million shares outstanding. If those figures were held constant purely for illustration, a 1-for-10 consolidation would correspond to roughly 111,000 shares and a NAV near $38 per share. Actual figures at the effective date can differ because the fund’s portfolio value, Dogecoin exposure and outstanding share count can change before the split is completed.

The reverse split comes less than a year after TXXD began operations on November 20, 2025. The fund occupies a specialized segment of the U.S. ETF market: leveraged exposure to an individual cryptocurrency through an exchange-traded vehicle. Its investment objective is to provide, before fees and expenses, two times the daily price performance of Dogecoin. That daily qualification is central to the product’s design and to the risks faced by investors holding it for longer periods.

TXXD does not simply hold Dogecoin and multiply its return. According to 21Shares, the ETF obtains DOGE-related exposure through financial instruments that can include swap agreements, futures and other derivatives. Under normal circumstances, at least 80% of its assets are allocated to instruments providing exposure consistent with the fund’s 2x daily objective. Teucrium Investment Advisors serves as investment adviser and 21Shares US acts as sub-adviser.

The structure makes TXXD materially different from an unleveraged spot crypto ETF. A conventional spot product is generally designed to track the underlying asset, less expenses and tracking differences. TXXD instead resets its targeted leverage on a daily basis. Its prospectus stresses that the fund seeks its stated 2x result for a single day, measured from one NAV calculation to the next, rather than over weeks, months or other extended holding periods.

That daily reset can cause longer-term performance to diverge substantially from two times Dogecoin’s cumulative return. Compounding becomes particularly consequential when the underlying cryptocurrency is volatile and changes direction repeatedly. The Securities and Exchange Commission-filed prospectus says the fund can lose money over periods longer than a day even if DOGE rises over the same period, and that longer holding periods and greater volatility can intensify the effect.

Those characteristics make the reverse split more than a cosmetic point for ETF watchers even though it does not alter TXXD’s leverage target. Leveraged products can experience unusually large percentage moves because both positive and negative daily changes in the reference asset are amplified. Sustained declines in the underlying exposure can therefore push a leveraged ETF’s per-share price downward faster than would typically occur in an unleveraged product, while the daily reset and compounding process can further affect its path over time.

21Shares reported a management fee of 1.89% for TXXD as of September 2 and characterized its intended holding-period design as short-term. The issuer’s disclosures say the product is intended for sophisticated investors who understand leverage and daily compounding and who can actively monitor their positions. They also warn that an investor could lose the full value of an investment within a single trading day under extreme adverse conditions.

The reverse split does not change those risk parameters. It does not reduce TXXD’s target from 2x, convert the fund to direct Dogecoin ownership or alter its fundamental daily investment objective. Nor does it restore losses previously experienced by shareholders. The principal mechanical effects are the reduction in share count and corresponding increase in the value represented by each share.

One shareholder-level complication involves positions that do not divide evenly by 10. The SEC prospectus supplement says the reverse split may leave some investors with fractional shares. Because fractional TXXD shares cannot trade on Nasdaq, the fund will redeem such fractional interests for cash at the split-adjusted NAV as of the effective date. No transaction fee is expected to be imposed for that redemption.

The cash treatment can nevertheless matter for taxes. The fund said a fractional-share redemption may cause a shareholder to recognize a gain or loss, depending on the investor’s circumstances and tax basis. Apart from fractional-share redemptions, the reverse split is not expected to constitute a taxable transaction for holders. Investors whose brokerage accounts support internal fractional-share displays should still examine how their intermediary processes the corporate action because the exchange-traded fund itself will redeem applicable fractions as described in its regulatory filing.

Operational processing will run through the Depository Trust Company. The trust’s transfer agent will notify DTC and instruct it to make the necessary adjustments to positions held through the depository system. 21Shares said brokerage and bank accounts holding TXXD should update automatically on or shortly after the effective date, although investors with questions about account displays or transaction records are being directed to their financial intermediaries.

The September 8 start of split-adjusted trading follows the September 4 effective-date close, with the intervening U.S. market calendar separating the corporate action from the first session in which investors are expected to see the newly adjusted share price. The ticker remaining unchanged should preserve TXXD’s market identity, while the new CUSIP will distinguish the post-split security for clearing, custody and recordkeeping systems.

For ETF investors, the most visible change will be the much higher nominal price per share. A higher share price can alter how investors size positions in accounts that trade only whole shares, while fractional-share brokerage platforms can reduce that practical difference for some retail users. The issuer did not present the reverse split as a change in the portfolio’s investment thesis and described it as a structural modification that leaves aggregate shareholder value unaffected at the moment of adjustment.

TXXD’s relatively modest asset base also places the transaction in the context of an increasingly fragmented crypto-ETF market. The product reported approximately $4.21 million in AUM on September 2 and daily volume of 63,402 on the issuer’s product page. Those figures are small compared with the largest cryptocurrency ETFs, reflecting the narrower audience for a leveraged instrument tied specifically to Dogecoin rather than for broad-market or unleveraged Bitcoin exposure.

The specialization is deliberate. TXXD offers traders a way to pursue magnified daily DOGE exposure through a Nasdaq-listed security without directly establishing leverage in cryptocurrency markets. The ETF format can place the position within conventional securities brokerage infrastructure, but it does not remove the risks associated with the underlying crypto market or the derivatives used to obtain leverage. 21Shares warns that DOGE and DOGE-related instruments can experience substantial volatility and periods of reduced liquidity.

The fund is also treated as a commodity pool and is subject to provisions of the Commodity Exchange Act and Commodity Futures Trading Commission rules. Its use of futures and other derivatives introduces risks that differ from those of a fund simply holding conventional securities. The issuer identifies potential issues including clearing-broker exposure, collateral risk, valuation risk, market disruptions, trading halts and whipsaw conditions, in addition to risks specific to Dogecoin.

Cash-based ETF mechanics add another consideration. TXXD currently intends to conduct creations and redemptions principally for cash because of the nature of its investments, according to its disclosures. That differs from many traditional equity ETFs that can transfer baskets of securities in kind and may affect tax efficiency and portfolio transaction activity. The reverse split itself does not modify this creation-and-redemption framework.

For investors evaluating TXXD after September 8, comparing the new share price directly with pre-split historical prices without adjustment would therefore be misleading. A nominal move from several dollars per share to several tens of dollars will largely reflect the 1-for-10 consolidation rather than a sudden appreciation in Dogecoin or the ETF’s portfolio. Performance analysis should instead use split-adjusted data or total return figures that account for the change in share count.

The same principle applies to outstanding shares. Based on the split ratio, the number of TXXD shares in circulation is expected to decline by about 90%, but that decline is not equivalent to a 90% reduction in fund assets. Each post-split share represents approximately ten times the pre-split claim on the fund. Subsequent changes in AUM will continue to depend on market performance and investor creation and redemption activity rather than on the consolidation alone.

The announcement also reinforces the importance of distinguishing an ETF corporate action from a portfolio allocation decision. Reverse splits can change the presentation and trading denomination of an exchange-traded product without changing its underlying objective. In TXXD’s case, the core proposition remains a tactical vehicle seeking twice Dogecoin’s daily price performance, with all of the amplified volatility, compounding effects and path dependency associated with that mandate.

With the split due to become effective after the September 4 close and adjusted trading scheduled for September 8, investors will next watch how the new share denomination affects trading activity and how TXXD behaves as Dogecoin moves. The structural adjustment may make the quoted per-share price look markedly different, but the dominant drivers of future returns remain unchanged: daily DOGE performance, the fund’s derivative implementation, leverage, expenses, compounding and the trading conditions surrounding cryptocurrency markets.