Filings from Thursday reveal that Bitwise has revised its plans for the Dogecoin and Aptos exchange-traded funds (ETFs) to include the ability for physical redemptions. This change comes as conversations regarding the AltCoin ETF and reimbursement structures are gaining momentum with U.S. regulators.
The option for redeeming physical assets allows investors to swap their ETF shares for the actual underlying tokens. This approach is seen as more tax-efficient and might attract a variety of investors, from institutional players to retail ones.
Back in February, the SEC sought input on its proposal to enable spot Bitcoin (BTC) and ether (ETH) ETFs to operate with similar redeemable mechanisms. At a recent event hosted by the Bitcoin Policy Institute, SEC Director Hester Pierce noted that in-kind redemptions for crypto ETFs are likely on the horizon.
Aptos ETF as a Major Shift
Bitwise initially introduced proposals for Dogecoin (Doge) and Aptos (Apt) ETFs earlier this year, with filings made in January and March. This revision is a typical aspect of the ETF review process, which allows companies to adjust their fund structures and disclosures in response to SEC feedback.
“The ETF Access is a significant move in integrating APTOS and other Layer 1 tokens into traditional markets,” said Solomon Tesfaye, head of capital markets at APTOS Labs. “This is going to be transformative,” he added.
He emphasized that it brings in crucial capital, enhances liquidity, and provides necessary regulatory validation.
Dogecoin (Doge), created by software engineers Billy Marx and Jackson Palmer, ranks as the eighth largest cryptocurrency, boasting a market cap of $24.1 billion. It operates on its own blockchain and has been characterized as the “most honest sh*tcoin.” Competitors Grayscale and 21 Shares have also aimed to launch a Doge ETF.
On the other hand, Aptos (APT), stemming from a former engineer at Meta, is the 32nd largest cryptocurrency with a market value of $2.85 billion. Its 52-week high reached around $20, according to Cointelegraph’s index.
Increase in Altcoin ETF Applications in 2025
As of April 21, more than 70 cryptocurrency ETFs are waiting for SEC reviews, covering a diverse range of assets from governance tokens to memecoins and derivatives.
The rising number of Altcoin ETF submissions appears to be linked to the SEC’s more favorable stance towards the crypto sector since the beginning of President Trump’s administration. A Cointelegraph survey indicated that at least 31 Altcoin ETF proposals were submitted in the first half of 2025.
However, some critics argue that these funds could lead to a centralization that would ultimately undermine the decentralized ethos of cryptocurrency.
