- Bitwise amended its Dogecoin and Aptos ETF filings to include in-kind redemptions, allowing investors to swap ETF shares directly for DOGE or APT tokens, a move that’s seen as more tax-efficient and appealing to institutions.
- Aptos ETF could be a “game changer,” with Aptos Labs calling it a step toward deeper capital inflows, higher liquidity, and much-needed regulatory validation for Layer-1 altcoins in traditional markets.
- Altcoin ETF filings are booming in 2025, with over 70 crypto-related funds under SEC review and 31 targeting altcoins—fueling debate over whether ETFs help or harm crypto’s decentralized ethos.
Bitwise just made a big move in the crypto ETF space. On Thursday, the asset manager filed amendments for its proposed Dogecoin and Aptos ETFs — and here’s the kicker: both now include in-kind redemptions. It’s a nerdy term, sure, but it could mean smoother sailing for both funds, and maybe, a little more legitimacy for altcoins in TradFi circles.
Why In-Kind Redemptions Matter
So, what exactly are in-kind redemptions? Basically, they let ETF investors swap shares for the underlying crypto — like DOGE or APT — directly, instead of getting cashed out. It’s not just a technical tweak; it’s a potentially huge win for tax efficiency and could attract both institutional giants and curious retail folks looking for lower friction.
The SEC has been warming up to this idea too. Back in February, they opened up comments on allowing in-kind mechanisms for spot Bitcoin and Ether ETFs. Then this week, Commissioner Hester Peirce casually dropped that they’re likely coming soon. Seems like Bitwise got the memo and moved quickly.
Aptos Could Be the Sleeper Hit
Bitwise initially filed for the DOGE ETF in January and the Aptos ETF a few months later. These tweaks are just part of the usual back-and-forth with the SEC, adjusting structure and disclosures based on feedback.
But it’s the Aptos fund that’s raising eyebrows. Solomon Tesfaye from Aptos Labs says ETF access would be “a game-changer.” He’s not just hyping—it could pull in capital, boost liquidity, and hand Aptos the regulatory seal of approval that big money often demands.
And Aptos? It’s no small fry. Launched by ex-Meta engineers, APT has hit $20 before and sits with a $2.85B market cap. Bringing it to an ETF could elevate its visibility overnight.
DOGE Still Doing DOGE Things
Dogecoin, still the poster child of memecoins, is also in the mix here. With a market cap of $24.1 billion, it might be silly on the outside, but it’s serious business to a lot of traders. Bitwise wants in. So do Grayscale and 21Shares, who’ve also tossed their hat in the DOGE ETF ring.
Despite its origin story (a joke turned global sensation), DOGE now runs on its own chain and commands huge social and market energy. Galaxy Digital even called it “the most honest sh*tcoin.” Make of that what you will.
The Bigger Picture: Altcoin ETF Boom
Right now, over 70 crypto ETF proposals are chilling in the SEC’s review queue. And the trend? Exploding. Just in the first half of 2025, 31 altcoin ETFs have been filed — covering everything from memecoins to Layer-1 tokens and even derivatives.
The push is fueled in part by a more open stance under the Trump administration, which has dialed back the harsh scrutiny from earlier years. But not everyone’s thrilled. Critics argue these ETFs defeat the point of decentralization and could just repackage Web3 into the same old Wall Street wrapper.
