TLDR
Bitwise updates DOGE and APT ETF filings to include in-kind redemptions.
SEC explores in-kind redemptions for crypto ETFs amid rising altcoin filings.
Over 70 crypto ETF applications await SEC review as 2025 altcoin push grows.
Aptos and Dogecoin ETFs reflect shift toward mainstream crypto market access.
Bitwise Asset Management has added in-kind redemption mechanisms to its proposed Dogecoin (DOGE) and Aptos (APT) exchange-traded funds (ETFs), according to new filings submitted to the United States Securities and Exchange Commission (SEC) on Thursday. The amendments reflect the growing interest in altcoin ETFs and how they may be structured to better align with both investor preferences and regulatory feedback.
The in-kind redemption model enables ETF shareholders to receive underlying tokens instead of cash when they redeem their shares. This structure can reduce taxable events and lower transaction costs, making it attractive to both institutional and retail participants.
In-Kind Redemptions Draw Growing Attention
In-kind redemptions are not new to traditional finance but are now being considered for digital asset ETFs. According to the February SEC comment request, in-kind structures were being evaluated for spot Bitcoin and Ether ETFs. SEC Commissioner Hester Peirce recently confirmed that such mechanisms are being discussed seriously for crypto products.
She said during a panel at the Bitcoin Policy Institute on Wednesday, “I think the time has come for us to consider in-kind redemptions more seriously.” The inclusion of this model in Bitwise’s latest filings indicates that these discussions may be affecting how issuers are preparing their ETF applications.
Bitwise’s DOGE and APT ETFs, which were initially filed earlier in the year, now align with a broader shift in the ETF market. The use of in-kind processes is commonly viewed as more efficient, especially for asset classes with high volatility or wide bid-ask spreads, such as cryptocurrencies.
ETF Amendments Are Part of Ongoing SEC Process
ETF applications are rarely approved in their original form. Filings often go through multiple amendments as issuers respond to comments and recommendations from the SEC. Bitwise originally filed for its Dogecoin ETF in January 2025 and its Aptos ETF in March 2025.
These updates are considered routine. They allow issuers to refine structural elements, improve disclosure language, or add features like redemption methods. Bitwise’s decision to include in-kind redemptions comes during a time of broader industry efforts to adapt crypto ETF structures to investor needs.
Solomon Tesfaye, head of capital markets at Aptos Labs, said the ETF proposal would bring Aptos closer to traditional markets. “ETF access would mark a major step forward in integrating Aptos and other L1s into capital markets,” he told Cointelegraph.
DOGE and APT ETFs Reflect Broader Market Trends
Bitwise’s filings are part of a wider trend of altcoin ETF applications submitted to the SEC in 2025. As of April 21, more than 70 cryptocurrency ETF applications were awaiting regulatory review. These include a mix of governance tokens, memecoins, and structured products linked to blockchain assets.
Grayscale, 21Shares, and other firms have also filed for DOGE-based ETFs which Bloomberg analysts predict 95% potential approval. DOGE, created in 2013, remains one of the most actively traded memecoins with a market capitalization above $24 billion. It runs on its own blockchain and has been referenced by firms like Galaxy Digital.
Aptos, a Layer 1 blockchain created by former Meta engineers, has seen renewed interest as part of this ETF wave. With a market capitalization near $3 billion, Aptos has reached a 52-week high of $20 and continues to be mentioned as a strong candidate for ETF exposure.
ETF Landscape Shifting Under New Administration
The rise in altcoin ETF filings follows a change in regulatory posture since the inauguration of President Donald Trump. According to Research, at least 31 ETF applications focused on altcoins have been submitted in the first half of 2025 alone.
While some critics argue that ETFs may contradict the decentralized nature of crypto assets, many industry stakeholders view them as a step toward mainstream integration. The SEC’s openness to in-kind mechanisms may encourage more issuers to pursue ETF structures for a wide range of crypto assets.
As discussions continue, in-kind redemptions could become a key feature in future digital asset ETF approvals. The SEC has not provided a timeline for decisions, and reviews remain ongoing.
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