Doge ETF inches toward approval as Bitwise updates filing

The prospect of a spot Dogecoin exchange-traded fund (ETF) is gaining traction, fueled by increased interaction between issuers and regulators, raising hopes for eventual approval.

Recent filings reveal that Bitwise Asset Management has submitted amended applications to the U.S. Securities and Exchange Commission (SEC) for its proposed spot Dogecoin (DOGE) and Aptos (APT) ETFs.

Bitwise was among the first to file for a Dogecoin ETF in January, and these amendments reflect ongoing dialogue between issuers and the regulatory commission regarding the proposals. These updated filings also follow the SEC's recent decision to extend its review of Bitwise's Dogecoin ETF, citing the need for additional time to evaluate whether the product adheres to legal standards.

A significant modification in the revised proposals is the inclusion of "in-kind" creation and redemption mechanisms, a feature absent from the original filings. This enhancement allows ETF shares to be exchanged directly for the underlying crypto asset, potentially improving tax efficiency and minimizing market impact.

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Commenting on the amended filings, Bloomberg ETF analyst Eric Balchunas characterized the updates as encouraging, suggesting they indicate growing momentum surrounding spot crypto ETFs. He further noted that the inclusion of in-kind mechanics is a "huge update," likely to establish a positive precedent and become a standard practice.

Earlier this month, fellow Bloomberg analyst James Seyffart estimated the approval odds for a Dogecoin ETF at 80%, and the heightened regulatory engagement suggests a plausible pathway to approval for the proposed investment vehicle.

Currently, firms like Grayscale and 21Shares are also vying for Dogecoin ETF approval, while Bitwise remains the sole issuer to have filed for an Aptos fund.

The SEC is currently assessing numerous proposals for other spot ETFs, reflecting increasing institutional interest in altcoin-based products.

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