Bitwise Files Amended S-1s for Its Spot Dogecoin ETF and Aptos ETFs: What You Need to Know

• What Are the Key Updates in Bitwise’s Amended ETF Filings?
• How Does Bitwise’s Approach Differ from Previous Crypto ETF Filings?
• What Are the Next Steps for the Dogecoin and Aptos ETFs?
• How Do These Filings Fit into the Broader Crypto ETF Landscape?
• Frequently Asked Questions

Bitwise Asset Management has submitted amended S-1 registration statements for its proposed Spot dogecoin and Aptos ETFs to the SEC, signaling progress in the regulatory review process. The updates include in-kind creations and redemptions for the Dogecoin ETF, while the Aptos ETF could become the first U.S. fund solely focused on APT tokens. Analysts view these filings as positive steps, reflecting SEC engagement and alignment with other spot crypto ETF approvals. Dive into the details below to understand the implications and timelines for these groundbreaking funds.

What Are the Key Updates in Bitwise’s Amended ETF Filings?

Bitwise Asset Management has taken significant steps toward launching its Spot Dogecoin and Aptos ETFs by filing amended S-1 registration statements with the SEC. The updated submissions, made on Thursday, come just two weeks after the SEC delayed its review of the Dogecoin ETF. Eric Balchunas, Senior ETF Analyst at Bloomberg Intelligence, noted that these revisions are a positive development, indicating active engagement with regulators. The filings also align with the approval patterns seen in other spot crypto ETFs, such as those for Bitcoin and Ethereum.

The Dogecoin ETF filing now includes provisions for in-kind creations and redemptions, allowing authorized participants to transact directly in Dogecoin rather than cash. This change is critical for reducing slippage and improving tax efficiency, and it’s seen as a regulatory necessity for future spot crypto ETFs. Meanwhile, the Aptos ETF, if approved, would be the first U.S. fund exclusively tracking APT, the native token of the Aptos blockchain. Bitwise registered a Delaware Trust for this ETF in late February and filed the S-1 in early March.

How Does Bitwise’s Approach Differ from Previous Crypto ETF Filings?

Bitwise’s initial Dogecoin ETF filing sought registration under the Securities Act of 1933 (the '33 Act), which is typically used for commodity and physically backed ETFs. This contrasts with earlier applications from firms like Rex Shares and Osprey Funds, which relied on the Investment Company Act of 1940 (the '40 Act). The '40 Act offers stronger investor protections, including stricter governance requirements, but the '33 Act provides more flexibility in structuring funds like Bitwise’s proposed ETFs.

The choice of regulatory framework could influence how these funds operate and are perceived by investors. For instance, the '33 Act may allow Bitwise to innovate in fund structuring but could also subject the ETFs to different regulatory scrutiny. The Aptos ETF filing notably excludes a staking mechanism, despite Aptos being a proof-of-stake blockchain. This decision may reflect regulatory caution or strategic considerations by Bitwise.

What Are the Next Steps for the Dogecoin and Aptos ETFs?

For the Aptos ETF, Bitwise must submit a FORM 19B-4 to initiate the official review window. Once the SEC acknowledges the filing, a 240-day countdown begins, during which the agency must issue a final decision. The Dogecoin ETF faces a similar timeline, though the SEC has already extended its review period to June 12 to address concerns about market risks and investor protection.

The inclusion of in-kind transactions in the Dogecoin ETF filing is a notable upgrade from the initial January submission. This feature is preferred for its efficiency and tax benefits, and its addition suggests Bitwise is addressing regulatory expectations head-on. However, the SEC has yet to approve a custodian for the Dogecoin ETF, a critical hurdle that must be cleared before launch.

How Do These Filings Fit into the Broader Crypto ETF Landscape?

Bitwise’s amended filings come amid a flurry of activity in the crypto ETF space. The firm already manages the Bitwise bitcoin ETF (BITB) and has pending applications for other funds, including one focused on XRP. Meanwhile, other asset managers are exploring hybrid products, such as IDX’s proposed ETF combining exposure to gold and Bitcoin through derivatives.

The SEC’s cautious approach to crypto ETFs reflects ongoing concerns about market volatility and investor protection. However, the progress seen in Bitwise’s filings—particularly the alignment with regulatory preferences—hints at a potential path forward for similar products. As the crypto market matures, these developments could pave the way for more diversified and accessible investment options.

Frequently Asked Questions

What is the significance of Bitwise’s amended S-1 filings?

The amended filings indicate active engagement with the SEC and address key regulatory requirements, such as in-kind creations for the Dogecoin ETF. These updates improve the likelihood of approval and align Bitwise’s proposals with other successful spot crypto ETFs.

How does the Aptos ETF differ from other crypto ETFs?

The Aptos ETF WOULD be the first U.S. fund solely focused on APT tokens, offering unique exposure to the Aptos blockchain. Unlike some other ETFs, it does not include a staking mechanism, which may simplify regulatory approval.

What are the next regulatory hurdles for these ETFs?

Bitwise must file a Form 19B-4 for the Aptos ETF and secure a custodian for the Dogecoin ETF. The SEC’s review process will then determine whether these funds can launch.