Bitwise added in-kind redemption to its Dogecoin ETF, aiming to improve efficiency and reduce trading impact during creation and redemption.
Increased discussions between ETF issuers and the SEC signal growing regulatory momentum toward approving spot cryptocurrency.
Other firms like Grayscale and 21Shares are also competing for Dogecoin ETF approval as institutional interest in altcoins rises.
Bitwise Asset Management has revised its application for a spot Dogecoin exchange-traded fund, incorporating key updates that reflect deeper engagement with U.S. regulators. The amended filing was submitted to the Securities and Exchange Commission as discussions continue between ETF issuers and the agency.
The SEC recently extended its review period for Bitwise’s Dogecoin ETF, noting the need for further evaluation. The decision followed initial filings made by Bitwise earlier in the year. Despite the delay, ongoing communication indicates regulatory interest in the proposal.
In-Kind Feature Gains Attention
A significant update in the amended filing is the inclusion of an “in-kind” creation and redemption process. This mechanism allows ETF shares to be exchanged directly for Dogecoin, potentially improving tax efficiency and lowering transaction costs. The feature was not present in the original submission.
Bloomberg ETF analyst Eric Balchunas described the in-kind inclusion as a substantial improvement. He stated that such additions could shape future crypto ETF standards. His colleague James Seyffart recently estimated Dogecoin ETF approval odds at 80%, pointing to increased optimism in the space.
Other Firms Compete in ETF Race
While Bitwise is the only firm to propose an Aptos ETF, it is joined by Grayscale and 21Shares in seeking approval for a Dogecoin ETF. Multiple issuers are now engaging with regulators as demand for spot altcoin-based ETFs grows.
The SEC is currently reviewing a range of proposals for various spot cryptocurrency ETFs. With institutional investors showing interest in alternative crypto assets, the push for approval continues across the industry.
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