Bitwise adds in-kind redemptions to DOGE, APT ETF filings

Bitwise has amended its proposed Dogecoin and Aptos exchange-traded funds to include in-kind redemptions, according to filings on Thursday. The updates come as discussions around altcoin ETFs and redemption structures gain traction with US regulators.

In-kind redemptions allow investors to exchange ETF shares directly for the underlying tokens. The mechanism is considered more tax-efficient and can appeal to all types of investors, from institutional to retail.

In February, the SEC sought comments on a proposal to allow in-kind creations and redemptions for spot Bitcoin (BTC) and Ether (ETH) ETFs. During a panel at the Bitcoin Policy Institute on Wednesday, US Securities and Exchange (SEC) Commissioner Hester Pierce said in-kind redemptions for crypto ETFs are on the horizon.

APT ETF would be a “game changer”

Bitwise first proposed its Dogecoin (DOGE) and Aptos (APT) ETFs earlier this year, with SEC filings submitted in January and March, respectively. Amendments are a standard part of ETFs vetting process, which allows an entity to respond to SEC feedback by altering the fund structure, mechanics, and disclosures.

“ETF access would mark a major step forward in integrating Aptos and other L1s into traditional capital markets,” Solomon Tesfaye, head of capital markets at Aptos Labs, told Cointelegraph. “It would be a game-changer,” he said.

”It would inject significant capital, enhance liquidity and provide a form of regulatory validation that institutions need.”

Popular memecoin Dogecoin (DOGE), created by software engineers Billy Markus and Jackson Palmer, , with a $24.1 billion market capitalization. It runs on its own blockchain and is considered “the most honest sh*tcoin” by Galaxy. Grayscale and 21Shares, competitors to Bitwise, have also filed to launch DOGE ETFs.

Aptos (APT), the native token of a blockchain created by former Meta engineers, is the 32nd-largest cryptocurrency. It has a $2.85 billion market capitalization and has seen a 52-week high of $20, .

Altcoin ETF filings rise in 2025

As of April 21, more than 70 cryptocurrency ETFs were awaiting SEC review, with assets in funds’ baskets ranging from governance tokens to memecoins and derivatives.

Filings for altcoin ETFs are driven by the SEC's revamped approach to the crypto industry since the inauguration of President Donald Trump. According to Cointelegraph Research, at least 31 altcoin ETF applications have been filed in the first half of 2025.

Critics of such funds say crypto ETFs centralize what was meant to be decentralized and undermine financial empowerment.