Bitwise Amends Dogecoin Aptos ETFs With In-Kind Redemptions

Bitwise Asset Management has amended its proposed exchange-traded funds (ETFs) for Dogecoin and Aptos to include in-kind redemptions, according to filings submitted on Thursday. This update comes as discussions around altcoin ETFs and their redemption structures gain traction with U.S. regulators. In-kind redemptions allow investors to exchange ETF shares directly for the underlying tokens, a mechanism considered more tax-efficient and appealing to both institutional and retail investors.

In February, the U.S. Securities and Exchange Commission (SEC) sought comments on a proposal to allow in-kind creations and redemptions for spot Bitcoin (BTC) and Ether (ETH) ETFs. During a panel at the Bitcoin Policy Institute on Wednesday, U.S. Securities and Exchange (SEC) Commissioner Hester Pierce indicated that in-kind redemptions for crypto ETFs are on the horizon. This development suggests a growing acceptance of in-kind redemptions as a viable mechanism for crypto ETFs, which could pave the way for similar structures in other altcoin ETFs.

Bitwise first proposed its Dogecoin (DOGE) and Aptos (APT) ETFs earlier this year, with SEC filings submitted in January and March, respectively. Amendments are a standard part of the ETF vetting process, allowing entities to respond to SEC feedback by altering the fund structure, mechanics, and disclosures. Solomon Tesfaye, head of capital markets at Aptos Labs, highlighted the significance of ETF access for integrating Aptos and other Layer 1 blockchains into traditional capital markets. He described it as a "game-changer" that would inject significant capital, enhance liquidity, and provide regulatory validation needed by institutions.

Dogecoin, created by software engineers Billy Markus and Jackson Palmer, is a popular memecoin and the eighth-largest cryptocurrency by market capitalization. Aptos, the native token of a blockchain created by former Meta engineers, is the 32nd-largest cryptocurrency. The inclusion of in-kind redemptions in Bitwise's ETF filings is seen as a positive step towards regulatory approval, as it addresses concerns about tax efficiency and slippage. This amendment is part of a broader trend of increasing filings for altcoin ETFs, with more than 70 cryptocurrency ETFs awaiting SEC review as of April 21. The revamped approach to the crypto industry by the SEC has driven these filings, with at least 31 altcoin ETF applications submitted in the first half of 2025.

Critics argue that crypto ETFs centralize what was meant to be decentralized and undermine financial empowerment. However, the growing interest in cryptocurrency ETFs and the increasing demand for regulated financial products that provide investors with access to digital assets suggest a shift in the market. The approval of spot ETFs for Dogecoin and Aptos would offer investors a new avenue to invest in these cryptocurrencies, potentially driving further adoption and growth in the market. The progress made by Bitwise is indicative of the broader trend in the cryptocurrency industry, where more companies are seeking to offer regulated financial products to meet the growing demand for cryptocurrency investments and the need for regulatory clarity and oversight.