- Bitwise has filed an S-1 approval to launch the first Aptos-based ETF in the U.S.
- The ETF will track APT prices and provide an easier way to access the crypto market.
- SEC approval is expected to allow more investors to enter the Aptos market legally.
Bitwise Asset Management has officially submitted an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) to launch an Aptos-based exchange-traded fund (ETF), positioning itself as the first firm in the country to take this step. The move underscores Bitwise’s continued push to introduce crypto investment products, expanding beyond its previous applications for Dogecoin and XRP ETFs.
Bitwise’s Strategic Move Toward an Aptos ETF
Bitwise recently filed a registration for an Apto-focused exchange-traded fund (ETF) after establishing a Delaware trust last month, marking the first sign of a growing interest in something related to Aptos. This is worth noting, as Aptos (APT) is underpinned by the Move programming language, designed for security and scalability, making it a layer-1 blockchain asset. In contrast to previous crypto ETFs that focused on Bitcoin and Ethereum, Bitwise has decided to go for an Aptos ETF, diverting its attention from high-cap assets.
According to the S-1 filing, the proposed ETF will hold APT tokens and track the CF Aptos–Dollar Settlement Price. Bitwise will manage the ETF, charging an annual fee, while shares will be created and redeemed in blocks of 10,000 units, known as “Baskets.” This structure enables institutional and retail investors to gain exposure to Aptos’s price movements without the complexities of directly handling the cryptocurrency.
SEC Approval Process and Potential Market Impact
In order to move forward, Bitwise must also file a 19b-4 application, a regulatory requirement that prompts the SEC to consider rule changes at the stock exchange where the ETF would be listed. This process is expected to span several months, with final approval contingent on the SEC’s evolving stance on investment vehicles.
The timing of Bitwise’s application falls within a more overarching regulatory climate, with U.S. authorities coming under increasing pressure to create very clear pathways concerning investment products in crypto. Such an ETF, if it were approved, would represent the biggest step yet toward the attainment of mainstream market integration of digital assets.
Aptos: A Unique Selection for an ETF
Despite Bitwise’s past preference for assets with much bigger capitalizations, Aptos stands apart, currently ranking 36th on the global scale, with its price reaching $3.8 B, according to CoinGecko. The blockchain project was developed by Aptos Labs, a company founded in 2021 by Mo Shaikh and Avery Ching, both former Facebook engineers. When it went live in October 2022, it was termed as a probable “Solana killer” due to its high-speed, affordable transactions. However, it remains smaller than Solana, with a market cap of just one-nineteenth of its competitors.
The introduction of an Aptos ETF could broaden market participation as it puts out big investors, such as pension funds and hedge funds, to allocate capital to the blockchain ecosystem via a regulated investment vehicle. Meanwhile, retail investors would gain easy access to Aptos without the need for digital wallets or direct cryptocurrency management.
Related: Bitwise Files for Dogecoin ETF as Nasdaq Pushes Hedera ETF
Growing Interest in Crypto ETFs Amid Regulatory Shifts
The company’s most recent move is in line with an economic trend where firms keep applying for SEC approval of crypto-related ETFs. The firm had earlier filed other applications for spot ETFs linked to Dogecoin and XRP, clearly showing its intention of enhancing crypto-investment accessibility. However, the introduction of an Aptos ETF serves to signify support for new blockchain networks, giving importance to some other new players apart from Bitcoin and Ethereum.
