The ETF race in crypto never slows down, but the latest move by Bitwise Asset Management to amend S-1 registration statements for its proposed spot Dogecoin (DOGE) and Aptos (APT) exchange-traded funds is more than just regulatory paperwork. Behind the clerical facade, a high-stakes game is playing out between the SEC, major asset managers, and a crypto-hungry public.
Setting the Stage: Why Dogecoin and Aptos?
Dogecoin has come a long way from its meme origins to becoming the eighth-largest cryptocurrency by market cap. Its journey is powered by internet culture, occasional celebrity endorsements, and solid exchange volume. Aptos, on the other hand, is a rising Layer 1 proof-of-stake blockchain known for its scalability claims and a $3 billion market cap. These cryptocurrencies are not just speculative tokens; they reflect a growing demand for diversification beyond the traditional Bitcoin and Ethereum universe.
Bitwise’s Strategic Timing
Bitwise’s amended S-1 filings come at a pivotal moment in the crypto ETF landscape. Bitcoin spot ETFs have already made significant inroads into the U.S. market, attracting billions in inflows and shifting investor perceptions. Ethereum spot ETF approvals appear imminent, and the SEC is reviewing a flood of filings for Solana, XRP, and now, more seriously, Dogecoin and Aptos.
Bitwise’s decision to proceed with amended filings, rather than waiting for others to clear the path, signals confidence. This move suggests that the SEC may be softening its stance, particularly after the success of Bitcoin spot ETFs and the shifting political winds favoring crypto products.
SEC Dialogue: Reading Between the Lines
While ETF watchers might dismiss the amendments as procedural, the details matter. According to Bloomberg’s Eric Balchunas and other analysts, these amendments reflect an ongoing dialogue with the SEC. The SEC’s willingness to engage in discussions and request clarifications indicates progress. The recent amendments highlight the mechanism of “in-kind” creations and redemptions, allowing authorized participants to swap Dogecoin or Aptos tokens for ETF shares directly. This feature, which aligns with the structure of Bitcoin ETFs, is a positive sign that the SEC is working through its checklist rather than outright rejecting the proposals.
What Has Bitwise Changed?
The revised filings for both funds reveal several key changes:
– Delaware Trust Registrations: Bitwise has registered dedicated trusts in Delaware for both Aptos and Dogecoin ETFs, a standard practice that signals serious intent and provides a framework for asset custody and governance.
– No Staking For Aptos—For Now: Despite Aptos being a proof-of-stake blockchain, Bitwise has chosen not to propose a staking mechanism. This decision likely aims to avoid regulatory scrutiny over whether staking constitutes an investment contract or security feature.
– In-Kind Creations/Redemptions: This feature, which allows for more efficient and lower-tax transactions, aligns the product design with the SEC’s approval trends for Bitcoin ETFs.
– Custody and Valuation Details: The amendments include specifics around custodianship (Coinbase for DOGE), NAV calculation, audit procedures, and risk reporting—all areas where the SEC has previously drilled applicants.
Significance for the Broader Crypto ETF Landscape
Bitwise’s amendments are part of a broader trend, with dozens of spot crypto ETF applications pending before the SEC. Recent updates to S-1 filings for Solana, alongside Aptos and Dogecoin, suggest a coordinated approach among issuers. The SEC, once seen as a barrier, now appears to be evaluating each product on its merits, focusing on product design, security, and custody.
Analysts now estimate a high probability (over 90%) of at least one major altcoin ETF approval by year-end. If Bitwise secures approval for Dogecoin or Aptos, it will mark a watershed moment, legitimizing crypto’s “long tail” in traditional markets.
Market Reactions and Forward-Looking Impact
The amended filings have already sparked brief price jumps in Dogecoin and Aptos, but the real story lies in the long-term implications:
– Broader Crypto Diversification: Spot ETFs for altcoins will allow a wider range of investors, from retail traders to retirement planners, to gain exposure without dealing with exchanges or wallets. Dogecoin, once a joke, could become a plausible “altcoin index fund holding.”
– Legitimacy and Institutional Inroads: The presence of an ETF signals to banks, brokers, and treasury desks that these assets demand infrastructure, research, and market-making, broadening the tent for crypto adoption.
– Regulatory Precedent: Each new ETF approval refines the SEC’s playbook and increases pressure to develop coherent frameworks around token classification, staking, and reporting.
– Product Innovation: Aptos stands out as the first U.S.-based ETF focused on a “new generation” Layer 1 blockchain, indicating that the market is scouting future blue-chips and not just relying on the oldest coins.
Obstacles Remain
Despite the optimism, several hurdles remain. The SEC has yet to approve a spot product for any altcoin, and Dogecoin’s historical volatility and low developer activity compared to rivals might invite scrutiny. The debate over whether certain tokens constitute securities is far from settled. Additionally, Bitwise must still submit and receive approval of 19b-4 forms from the exchanges that will trade the ETF shares.
Conclusion: The ETF Domino Effect
Bitwise amending its Dogecoin and Aptos ETF filings is more than an administrative step—it’s a signal of crypto’s growing legitimacy in mainstream finance. The SEC’s willingness to review and iterate on these submissions raises expectations of a breakthrough in asset management. If approved, these funds will reshape how mainstream investors interact with digital assets, boost legitimacy for previously “fringe” projects, and force both industry and regulators to adapt.
The ETF tide is unstoppable, and the first waves will define the future. For Dogecoin, Aptos, and millions of investors, Bitwise’s move might be the moment that joke became juggernaut, and experiment transformed into establishment. Crypto has knocked on the ETF door—this time, someone might just answer.
