Bitwise Dogecoin ETF Liquidation Value

Bitwise Dogecoin ETF (BWOW) is a Delaware statutory trust and grantor trust for tax purposes, organized November 6, 2025, with operations commencing November 25, 2025. Its sole asset is Dogecoin held in custody at Coinbase Custody Trust Company, LLC. As of March 31, 2026, the Trust held 6,567,469.6 Dogecoin with a fair value of $604,470 (Level 1, Coinbase principal market price of $0.092040). Total liabilities were $178, consisting of accrued Sponsor Fee. Net assets were $604,292.

Under the liquidation lens, recovery posture is effectively equivalent to NAV: the sole asset is Dogecoin marked at observable exchange prices (Level 1), there is no PP&E, no inventory, no intangibles, no goodwill, no debt, and no lease obligations. Applying a standard liquidation haircut to Dogecoin is structurally analogous to applying a discount to a publicly traded security — the asset is liquid but highly volatile. At the reported fair value, the single liability of $178 is de minimis. Liquidation value is effectively $604,292 minus any execution slippage on liquidating approximately 6.6 million Dogecoin, which is not quantified in the filing but represents a real, if modest, market-impact risk given the small absolute size of the Trust.

Period-over-period change is material: net assets declined from $1,152,815 at December 31, 2025 to $604,292 at March 31, 2026, a 47.6% reduction. The drivers were (1) net redemptions of 20,000 shares (2 baskets) returning $406,971 of Dogecoin to redemption counterparties, (2) realized losses of $93,486 on Dogecoin dispositions (reflecting cost basis established at higher DOGE prices), (3) unrealized depreciation of $47,382 on remaining holdings as DOGE price declined from $0.11695 to $0.09204 (-21.3%), and (4) $684 Sponsor Fee. Zero creations occurred during Q1 2026. Cost basis on remaining holdings is $1,000,020 against a fair value of $604,470, implying an unrealized loss of approximately $395,550 embedded in the remaining position — a material overhang relative to current liquidation value. The Sponsor Fee waiver on the first $500 million of Trust assets expired December 25, 2025; the 0.34% annual fee is now fully accruing and is settled in Dogecoin monthly, creating a continuous, if small, dilution to remaining holders. No comparative period financials are available; this is the Trust's first 10-Q. The filing does not separately disclose custody insurance coverage limits or counterparty concentration risk with Coinbase Custody in a quantified XBRL tag.