XRP News Today: Bitwise Revives Dogecoin Aptos ETFs Amid Regulatory Progress

Bitwise Asset Management has submitted revised filings for its spot Dogecoin and Aptos exchange-traded funds (ETFs), indicating a positive shift in the regulatory landscape for crypto ETFs. According to Eric Balchunas, a senior ETF analyst, the updated prospectuses suggest improved engagement between fund issuers and the U.S. Securities and Exchange Commission (SEC). This engagement is more consistent and optimistic compared to the period leading up to the approval of spot Bitcoin ETFs in January 2024.

The revised S-1 registration statements for the Dogecoin and Aptos ETFs include in-kind creation features, which allow for the direct exchange of underlying assets for ETF shares. This structure is favored by issuers and is seen as a strong regulatory green light for broader crypto ETF markets. Balchunas noted that the inclusion of in-kind creations and redemptions in the amended applications is a significant development, as it eliminates the need for participants to sell the underlying crypto to create shares, reducing the bid-ask spread and avoiding additional broker commissions.

Balchunas expects that Dogecoin, Aptos, and other altcoin ETFs could receive approval within the next two to four months. He predicts that the SEC will likely approve these ETFs in staggered batches to avoid overwhelming the marketplace and market makers. This approach is seen as a strategic move to manage the impact of multiple approvals on the market.

In addition to the Bitwise filings, there has been a surge in demand for digital-asset investment products following the success of spot Bitcoin and Ethereum funds. Issuers have submitted filings for more than three dozen spot altcoin ETFs over the past year, reflecting the growing interest in crypto investments. The recent filings by Invesco for a Solana-focused fund and the Cboe for a rule change enabling a listing for a product based on the price of the Pudgy Penguins token further highlight the active engagement in the crypto ETF space.

Bitwise has applications for funds tracing XRP, Solana, and Near, which are currently pending before the SEC. The company's spot Bitcoin fund has already netted more than $2.1 billion in investments since its approval, along with nine other funds. Together, these U.S.-based funds now manage about $130 billion in assets, marking one of the most successful ETF launches in history. The spot Ethereum fund has also seen respectable net inflows, further underscoring the growing interest in crypto ETFs.

According to the analyst's forecast, there is a better than 95% probability that the SEC will approve Solana, XRP, and Litecoin ETFs, as well as a 90% chance that Dogecoin and several other altcoin funds will receive their approvals. This optimistic outlook is based on the improved engagement and the inclusion of in-kind creation features in the amended filings, which are seen as positive indicators for the approval process.