Bitwise Resubmits ETF Applications for Dogecoin and Aptos, Highlighting In-Kind Redemption Feature

The digital asset management firm Bitwise has submitted updated S-1 forms to the SEC for the registration of spot exchange-traded funds (ETFs) focused on Dogecoin (DOGE) and Aptos (APT).

The company filed its application for a DOGE-ETF in January, while the application for an APT-ETF was submitted in March.

The new documents include a provision for in-kind redemptions, allowing shares to be bought back with the underlying assets rather than cash. This clause was missing from the initial filings.

“These are positive signals, indicating the SEC’s engagement and aligning with other approvals,” noted Bloomberg ETF analyst Eric Balchunas.

He highlighted that the inclusion of in-kind redemption mentions is “almost a guarantee” for approval of such redemption alternatives for “ETFs in all directions.”

SEC Commissioner Hester Peirce commented that this type of redemption for crypto funds is “on the horizon.” She stated the regulator has received numerous applications from firms, including the largest asset manager, BlackRock, requesting permission to settle in digital assets.

“These forms are currently under review. Therefore, I believe they will definitely be emerging at some point. While I cannot predict, we are seeing significant interest,” she added.

As a reminder, on June 25, spot ETFs based on the first cryptocurrency recorded 12 consecutive days of inflows, totaling $3.9 billion during this time frame.