The path to a spot Dogecoin (DOGE) exchange-traded fund (ETF) appears to be narrowing, as Bitwise Asset Management has submitted amended regulatory filings—a sign that U.S. Securities and Exchange Commission (SEC) engagement is progressing.
Amended Filing Includes In-Kind Redemptions
In its updated S-1 document, Bitwise proposed in-kind creations and redemptions, a key structure that allows authorized participants and broker-dealers to directly swap DOGE tokens for ETF shares, bypassing the need for converting crypto to cash and back again.
This adjustment could reduce tax liabilities and improve ETF efficiency, potentially attracting more institutional investors to the DOGE market.
“Near-lock at this point that in kind will be allowed in spot ETFs across the board,” said an ETF analyst in response to Bitwise’s amended filing.
Currently, all crypto ETFs in the U.S. must execute redemptions through a cash-based process, which can lead to unnecessary tax events and slippage. The switch to in-kind models marks a step toward bringing crypto ETF operations in line with traditional equity ETFs.
SEC Engagement Suggests Positive Momentum
The fact that Bitwise is making these updates signals ongoing dialogue with the SEC, which analysts interpret as a positive sign for potential approval. The move aligns with broader momentum in the crypto ETF space, where the approval of Bitcoin and Ethereum spot ETFs has set the precedent.
Bitwise has also filed for a spot Aptos ETF, further suggesting the SEC is reviewing multiple altcoin-based products.
DOGE, despite being down about 2% in the last 24 hours and trading near $0.16, remains one of the most well-known and widely traded meme cryptocurrencies.
Other Players Entering the Dogecoin ETF Race
Bitwise is not alone in this push. 21Shares has also submitted an application for a Dogecoin ETF, while Grayscale has proposed a Dogecoin Trust product, aiming to provide similar exposure but with a traditional closed-end fund structure and a 2.5% annual management fee.
The growing number of filings highlights rising institutional interest in Dogecoin and suggests that the asset may soon achieve mainstream investment legitimacy.
Conclusion
With the inclusion of in-kind redemptions and clear SEC engagement, Bitwise’s spot Dogecoin ETF proposal is moving closer to reality. If approved, it could set a precedent for altcoin ETF structures beyond just Bitcoin and Ethereum—paving the way for broader crypto adoption in traditional markets.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.