Bitwise Asset Management has filed amended registration statements with the U.S. Securities and Exchange Commission for its proposed spot Dogecoin and Aptos exchange-traded funds, signalling progress in ongoing discussions with regulators.
The updated S-1 filings now include provisions for “in-kind” creations and redemptions — a key mechanism previously absent from earlier versions. The revisions, filed this week, are being viewed by market analysts as a positive indication of continued regulatory engagement.
Bloomberg Senior ETF Analyst Eric Balchunas noted the inclusion of the in-kind feature marks a notable shift from initial filings submitted in January.
“One HUGE update to the filing is ‘in-kind’ creations and redemptions. That was nonexistent in an initial filing in January. Near-lock at this point that in-kind will be allowed in spot ETFs across the board.” He said.
In-Kind Transactions Seen as Regulatory Milestone
In-kind creation and redemption processes allow ETF shares to be exchanged for underlying assets rather than cash, a method often preferred for its tax efficiency and reduced market impact. Its presence in Bitwise’s amended filings suggests the SEC may be open to applying similar structures across crypto ETFs, in line with those used in traditional equity and commodity ETFs.
The SEC has historically been cautious about approving spot cryptocurrency ETFs, citing concerns over market manipulation and investor protection. However, the recent approval of spot Bitcoin ETFs in January 2024 has set a precedent that could inform future decisions.
Bitwise is among several asset managers seeking approval to launch ETFs tied to alternative cryptocurrencies, or “altcoins.” While spot Bitcoin and Ethereum ETFs have cleared regulatory hurdles, other crypto assets like Dogecoin and Aptos remain under review.
Industry Watching SEC’s Next Steps
The SEC’s willingness to engage with Bitwise through the amendment process is being interpreted as a procedural step toward possible future approval, though no timeline has been announced.
“Bitwise has filed amended S-1s for their spot Dogecoin ETF and their spot Aptos ETFs. Good signs as it indicates SEC engagement and tracks with other spot approvals.” Balchunas said.
Market participants are closely monitoring how the SEC approaches ETF applications for crypto assets beyond Bitcoin and Ethereum, which may set the tone for broader crypto market integration into traditional financial products.
