Bitwise Asset Management has taken a bold step in the world of cryptocurrency this June by adding in-kind redemptions to its ETF filings for Dogecoin (DOGE) and Aptos (APT). This move, made on June 27, 2025, is one of many in a rapidly evolving crypto landscape, where investors and regulators alike are keenly watching the ripple effects of such developments.
The Strategy Behind In-Kind Redemptions
In the intricate universe of crypto assets, in-kind redemptions are not merely a technicality—they represent a strategic shift. By opting for in-kind rather than cash redemptions, Bitwise is aligning itself with a practice often seen in traditional equity ETFs. The underlying idea here is to enhance tax efficiency and minimize transaction costs, while simultaneously offering more flexibility to market makers.
According to John Smith, a renowned analyst at Crypto Insight, “Bitwise’s decision underscores a broader trend in the industry where asset managers are seeking innovative ways to align crypto ETFs more closely with traditional financial instruments. This isn’t just about DOGE and APT; it’s a signal to the market about where crypto ETFs might be heading.” This trend is further evidenced by the spot crypto ETF filings for XRP, SOL, and DOGE, which have been noted for their high approval odds by Bloomberg.
The decision appears to be part of a larger strategy to make crypto ETFs more palatable to institutional investors, who are often wary of the volatility and regulatory uncertainty that still hang over the crypto markets like a fog.
Navigating Regulatory Waters
The United States Securities and Exchange Commission (SEC) already has over 70 cryptocurrency exchange-traded funds under review, including Bitwise’s latest filings. This crowded regulatory pipeline highlights both the burgeoning interest in crypto ETFs and the regulatory bottleneck that continues to challenge the industry. For instance, Solana and Pudgy Penguins ETF filings have recently been added to the SEC’s crypto to-do list, illustrating the growing complexity of the regulatory landscape.
Bitwise’s move is particularly noteworthy given the SEC’s historically cautious approach to crypto assets. The agency’s hesitance, some experts argue, stems from concerns about market manipulation, liquidity, and the overall maturity of the crypto market. However, the introduction of in-kind redemptions could potentially address some of these concerns by offering a mechanism that reduces the need for cash transactions, thereby mitigating liquidity risks.
Emily Tran, a legal expert with Blockchain Advisory, notes, “The SEC’s stance is slowly evolving. While they’re still stringent, filings like Bitwise’s reflect a growing sophistication in how firms are addressing regulatory concerns. It’s almost a chess game—each move carefully planned to anticipate the SEC’s next question.”
Market Implications
The broader implications of Bitwise’s strategic maneuvering are still unfolding. For one, the inclusion of in-kind redemptions could set a precedent for other ETF issuers, prompting a reevaluation of how these products are structured and offered to investors. It’s a development that could potentially lower barriers for future ETF approvals, creating a more dynamic and competitive marketplace.
Moreover, the choice of DOGE and APT is itself a statement. Dogecoin, often seen as a meme-driven asset, juxtaposed with Aptos, a newer blockchain platform that emphasizes scalability and developer-friendly features, reflects Bitwise’s strategy to cater to both speculative and utility-driven segments of the crypto market. It’s a balancing act, but one that offers a glimpse into how asset managers might blend diverse crypto narratives within their products.
Looking Ahead
As Bitwise awaits the SEC’s decision, the crypto community is abuzz with speculation. Will the SEC greenlight these innovative approaches, or will regulatory concerns stall progress? The outcome could very well influence the trajectory of crypto ETFs in the United States for the foreseeable future.
In the meantime, investors and market watchers are left to ponder the implications. Could in-kind redemptions become a standard feature in crypto ETFs, reshaping the landscape as we know it? And how will the SEC’s next move influence the pace at which crypto ETFs proliferate?
These questions, swirling in the minds of industry insiders and casual observers alike, underscore the dynamic and often unpredictable nature of the crypto world. As the story unfolds, one thing is certain: Bitwise’s latest step is far from the last word in the evolving dialogue between crypto innovation and regulatory oversight.
Source
This article is based on: Bitwise adds in-kind redemptions to DOGE, APT ETF filings
Further Reading
Deepen your understanding with these related articles:
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- Bitcoin, Dogecoin Targeted as Norway Eyes Ban on New Crypto Mining Operations
- Wyoming stablecoin commission names Aptos highest-ranking blockchain
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
