Bitwise Adds In-Kind Redemptions to DOGE and APT ETF Filings
Bitwise Asset Management has updated its ETF proposals for Dogecoin (DOGE) and Aptos (APT) to include in-kind creation and redemption mechanisms. This marks a significant step toward aligning these altcoin ETFs with the structures seen in approved Bitcoin and Ethereum funds, potentially paving the way for broader institutional adoption.
The new filings, submitted this week, reflect Bitwise's intention to allow authorized participants to exchange ETF shares directly for the underlying crypto assets, either DOGE or instead of going through cash settlements. This in-kind process is widely regarded as more efficient and cost-effective, especially for investors managing large volumes.
In-kind redemptions are a common feature in traditional commodity ETFs and are favored for their ability to reduce tax exposure and market friction. For crypto ETFs, the addition of in-kind capabilities helps reduce slippage during transactions and eliminates the need to convert between fiat and crypto, which can introduce delays and additional costs.
Bitwise's move comes at a time when the U.S. Securities and Exchange Commission is under increased pressure to expand its ETF approvals beyond Bitcoin and Ethereum. With several altcoin ETFs already under review, the inclusion of more sophisticated structures, such as in-kind redemptions, could strengthen the case for these products in regulatory eyes.
The Dogecoin and Aptos ETF applications, originally filed under the Securities Act of 1933, are now more closely modeled after successful spot Bitcoin ETF formats. The updated filings also name Coinbase Custody as the custodian for DOGE, suggesting that Bitwise is building institutional-grade infrastructure to support these products.
Bitwise's DOGE ETF was first filed earlier this year, with Aptos following shortly after. Both filings had faced initial delays as the SEC requested more time to assess market surveillance arrangements, pricing data reliability, and the general integrity of trading environments for these tokens. With the latest amendments, Bitwise appears to be responding to regulatory feedback and addressing technical concerns that previously stalled the review process.
The strategic inclusion of in-kind redemptions is seen as a proactive move designed to bolster the ETFs' operational appeal. This structure makes the ETFs more tax-efficient and less reliant on volatile spot market conditions when shares are created or redeemed.
Industry observers note that Bitwise's decision may influence other issuers to adopt similar approaches in their own altcoin ETF proposals. In recent months, ETF issuers have shown a growing interest in memecoins and next-generation layer-1 blockchain assets as demand shifts beyond the two dominant cryptocurrencies.
If approved, these DOGE and APT ETFs could become the first of their kind in the U.S. to offer direct crypto exposure through regulated investment vehicles. The move could attract both retail and institutional investors looking to diversify their crypto holdings in a more compliant, familiar framework.
The crypto ETF race continues to accelerate in 2025, and Bitwise's latest filings show the firm is positioning itself at the forefront of this evolving landscape. Whether the SEC agrees remains to be seen, but the groundwork is being laid for a broader altcoin ETF future.
