Altcoin ETF Future: Bitwise Unlocks Key Feature for Dogecoin and Aptos Filings

Exciting news for cryptocurrency investors! Bitwise has just made a significant update to its proposed exchange-traded funds (ETFs) for Dogecoin (DOGE) and Aptos (APT). This move involves adding a crucial feature that could make these potential Altcoin ETF offerings more appealing and tax-efficient for a wide range of investors.

Bitwise ETF Filings Get a Key Update

According to recent filings submitted on Thursday, Bitwise has amended its S-1 proposals for both its Dogecoin and Aptos ETFs. The key change? The inclusion of in-kind redemptions. This amendment comes at a time when discussions around altcoin ETFs and how they handle creations and redemptions are becoming more prominent among US regulators.

Understanding In-kind Redemptions

So, what exactly are in-kind redemptions and why do they matter for a Bitwise ETF or any crypto ETF? Traditionally, ETF redemptions involve exchanging ETF shares for cash. In-kind redemptions, however, allow investors to exchange their ETF shares directly for the underlying asset – in this case, DOGE or APT tokens.

This mechanism is widely considered more tax-efficient compared to cash redemptions. It can potentially reduce capital gains taxes for the ETF issuer, which can translate to better performance for investors. This feature is attractive to various investor types, from large institutions to individual retail participants.

The broader conversation around this isn’t limited to altcoins. The SEC itself sought public comment in February on allowing in-kind creations and redemptions for spot Bitcoin (BTC) and Ether (ETH) ETFs. Adding to the momentum, SEC Commissioner Hester Pierce recently commented at a Bitcoin Policy Institute panel that in-kind redemptions for crypto ETFs are indeed on the horizon.

The Potential Impact of a Dogecoin ETF

Bitwise first proposed its Dogecoin ETF earlier this year, with a filing submitted in January. Dogecoin, the popular memecoin originally created by software engineers Billy Markus and Jackson Palmer, holds a significant position in the crypto market. It currently ranks as the eighth-largest cryptocurrency by market capitalization, standing at approximately $24.1 billion. Despite its origins, Dogecoin runs on its own blockchain and has even been described by Galaxy as “the most honest sh*tcoin.” Bitwise isn’t the only player eyeing the DOGE market; competitors like Grayscale and 21Shares have also filed proposals for Dogecoin ETFs.

Why an Aptos ETF Could Be a “Game Changer”

Bitwise also filed its proposal for an Aptos ETF in March. Aptos (APT) is the native token of a blockchain developed by former Meta engineers. It is currently the 32nd-largest cryptocurrency, with a market capitalization of around $2.85 billion. The potential for an Aptos ETF is viewed with considerable optimism by those within the ecosystem.

Solomon Tesfaye, head of capital markets at Aptos Labs, highlighted the transformative potential, telling Crypto News Insights, “ETF access would mark a major step forward in integrating Aptos and other L1s into traditional capital markets.” He further elaborated, stating, “It would be a game-changer. It would inject significant capital, enhance liquidity and provide a form of regulatory validation that institutions need.”

The Expanding Altcoin ETF Landscape

Bitwise’s amendments are part of a larger trend. The number of cryptocurrency ETFs awaiting review from the United States Securities and Exchange Commission is substantial. As of April 21, over 70 such funds were pending, covering a wide array of digital assets from governance tokens to memecoins and derivatives.

Filings for Altcoin ETF products have notably increased, particularly in what the source refers to as the first half of 2025 (though likely meaning the current period). This surge appears linked to a perceived shift in the SEC’s approach to the crypto industry. However, it’s worth noting that not everyone views crypto ETFs positively. Critics argue that bringing decentralized assets into traditional, centralized fund structures undermines the core principles of decentralization and financial empowerment that cryptocurrency aims to offer.

Conclusion

Bitwise’s decision to add in-kind redemptions to its Dogecoin and Aptos ETF filings is a notable development in the ongoing push for regulated crypto investment products in the US. This feature is designed to offer tax advantages and broader appeal, potentially smoothing the path for these specific funds. As the SEC continues to review a growing pipeline of altcoin ETF applications, the inclusion of features like in-kind redemptions will likely be a key point of discussion, shaping how investors can access the diverse world of cryptocurrencies through traditional financial vehicles.