Bitwise has updated its pending application for an Aptos-based exchange-traded fund (ETF) to include in-kind redemptions, a mechanism that could mark a significant shift in how crypto ETFs function within traditional financial systems.
What’s New?
As part of the regulatory process, Bitwise submitted amendments to its proposed APT ETF, allowing investors to redeem ETF shares for the actual Aptos tokens, rather than just receiving cash equivalents.
This model—known as in-kind redemption—offers:
- Greater tax efficiency
- Smoother capital flow
- Enhanced appeal for both institutional and retail participants
The same adjustment was applied to Bitwise’s Dogecoin ETF filing.
Why It Matters
If approved, the Aptos ETF would:
- Represent one of the first altcoin ETFs featuring this redemption model
- Deepen Aptos’ integration into global capital markets
- Increase liquidity and visibility for APT across broader investor classes
According to Aptos Labs’ head of capital markets, such ETF access would be transformative for Layer 1 ecosystems looking to bridge the gap between Web3 innovation and TradFi infrastructure.
Context: A Broader Shift in ETF Design
Earlier this year, the SEC solicited public feedback on the use of in-kind mechanisms for Bitcoin and Ethereum ETFs. The inclusion of these structures in newer filings reflects growing regulatory engagement with altcoins and evolving ETF designs.
With over 70 crypto ETF filings currently under SEC review, the competition to modernize fund structures is heating up and Aptos is well-positioned to lead the next wave.
APT on Wall Street? It’s getting closer.
Read more: Bitwise Adds In-Kind Redemptions to DOGE, APT ETF Filings
