Bitwise Revises Dogecoin and APTOS ETF Filings: What This Means for Crypto Investors
- What’s New in Bitwise’s Revised Dogecoin and APTOS ETF Filings?
- Why Did the SEC Delay the Dogecoin ETF, and What’s Next?
- How Does the APTOS ETF Stand Out in the Crypto ETF Landscape?
- What Regulatory Hurdles Remain for These ETFs?
- Frequently Asked Questions
Bitwise Asset Management has filed amended S-1 registration statements with the SEC for its proposed Spot dogecoin and APTOS ETFs, signaling renewed regulatory engagement. The updates include "in-kind" creation/redemption for Dogecoin and a first-of-its-kind APTOS-focused fund. While the SEC delayed its Dogecoin ETF review in June, analysts like Bloomberg’s Eric Balchunas see the filings as a positive step. Bitwise’s strategy—using the 1933 Securities Act instead of the stricter 1940 framework—could offer flexibility but also invites scrutiny. Meanwhile, the APTOS ETF, if approved, would pioneer exposure to Aptos’ native token. Here’s a deep dive into the implications, timelines, and market reactions. ---
What’s New in Bitwise’s Revised Dogecoin and APTOS ETF Filings?
Bitwise’s updated S-1 submissions, filed on June 27, 2024, refine its earlier proposals for a Spot Dogecoin ETF and a novel APTOS ETF. The Dogecoin filing now includes "in-kind" transactions, allowing authorized participants to exchange Dogecoins directly (rather than cash), improving tax efficiency and reducing slippage. This aligns with industry preferences for crypto ETFs, as seen in Bitcoin products. The APTOS ETF, registered under Delaware law in February, targets Aptos’ blockchain token (APT) but notably excludes staking—a curious omission given Aptos’ proof-of-stake model. Both filings leverage the 1933 Securities Act, commonly used for commodity-based ETFs, diverging from the 1940 Act’s investor protections. Bitwise’s existing crypto ETF track record (e.g., BITB) lends credibility, but SEC approval remains uncertain.
Why Did the SEC Delay the Dogecoin ETF, and What’s Next?
The SEC postponed its Dogecoin ETF decision on June 12, 2024, citing market risks and investor protection concerns—a familiar refrain in crypto ETF reviews. Bitwise’s initial Dogecoin filing in March 2024 lacked in-kind provisions, now added to address regulatory expectations. Once the SEC acknowledges the amended filing, a 240-day countdown begins for a final verdict. Historically, such delays precede approvals (e.g., bitcoin ETFs in January 2024), but Dogecoin’s meme-coin status complicates its case. Analyst Eric Balchunas views the revised filings as a "good sign," suggesting the SEC is actively engaging. Meanwhile, Coinbase remains the custodian for Bitwise’s Dogecoin holdings, a detail likely to reassure regulators.
How Does the APTOS ETF Stand Out in the Crypto ETF Landscape?
Bitwise’s APTOS ETF, filed in March 2024, would be the first U.S. fund solely tracking Aptos’ APT token. Unlike staking-enabled ETFs (e.g., ethereum proposals), Bitwise’s fund avoids yield mechanisms, possibly to streamline approval. Aptos, a Layer-1 blockchain developed by ex-Meta engineers, has gained traction but lacks Bitcoin’s mainstream recognition. The ETF’s success hinges on APT’s liquidity and the SEC’s appetite for niche crypto products. Bitwise’s parallel filings—Dogecoin (broad appeal) and APTOS (targeted exposure)—reflect a diversified strategy to capture both retail and institutional interest.
What Regulatory Hurdles Remain for These ETFs?
The SEC’s scrutiny focuses on market manipulation risks, custody solutions, and investor safeguards. Bitwise’s use of the 1933 Act (vs. 1940) may expedite structuring but invites questions about governance. For Dogecoin, volatility and Elon Musk’s tweets remain wildcards. The Aptos ETF’s lack of staking could disappoint yield-seeking investors but simplifies compliance. Both funds must clear Form 19B-4 filings with exchanges before final approval. While Bitwise’s amendments show progress, the SEC’s cautious pace suggests a 2025 decision timeline—barring political or market shifts.
---Frequently Asked Questions
What are "in-kind" creations in Bitwise’s Dogecoin ETF?
In-kind transactions let authorized participants exchange Dogecoins directly (not cash) with the fund, reducing costs and tax burdens. This update aligns Bitwise’s proposal with industry standards.
Why no staking in the APTOS ETF?
Bitwise likely omitted staking to avoid regulatory complexity, though Aptos uses proof-of-stake. The MOVE prioritizes approval speed over yield potential.
When will the SEC decide on these ETFs?
After the SEC acknowledges the filings, a 240-day clock starts. Historical trends suggest a decision could come by early 2025, but delays are possible.