Outside Source
Key Takeaways:
- Bitwise has filed an S-1 application with the SEC to launch a spot Aptos ETF.
- This move is part of Bitwise’s strategy to expand its ETF offerings beyond Bitcoin and Ethereum.
- Investors reacted positively to the news, driving APT’s price up significantly upon the announcement.
Demand for a spot APT product has reached new heights with crypto asset manager Bitwise being the latest company to file an application with the U.S. Securities and Exchange Commission (SEC) to list a spot Aptos (APT) exchange-traded fund (ETF).
Is Bitwise’s Aptos ETF Filing a Tactical Play?
This follows Bitwise’s February 28th registration of a trust related to the Aptos ETF in Delaware, signaling their strong interest in this product. Aptos ETF is unique as Bitwise has been looking to launch ETFs for major cryptos including Bitcoin (BTC), Ether (ETH), Solana (SOL), XRP, and Dogecoin (DOGE).
Aptos is currently at a much earlier stage, ranking as the 36th largest cryptocurrency by market cap at $3.8 billion, according to CoinGecko, compared to the other cryptocurrencies Bitwise is targeting. This raises an important question: why Aptos?
One theory is that Bitwise believes in the long-term potential of Aptos’s technology and ecosystem. Backed by its parallel execution engine, Block-STM, Aptos can reach a transaction speed of over 130,000 transactions per second (TPS) at a low cost.
Aptos Blockchain-Ecosystem and Partnerships
To properly understand what an Aptos ETF would mean, we must dive deeper into the underlying technology that powers the Aptos blockchain. While many prior blockchains process transactions in sequence, Aptos employs a parallelization engine—Block-STM. This parallelization engine allows transactions to be processed simultaneously, increasing the network’s throughput. Unlike traditional blockchain models that face bottlenecks due to sequential transaction processing, Aptos’s innovative approach significantly enhances efficiency and scalability, making it a strong contender in the competitive layer-1 space.
An active ecosystem is critical for any blockchain solution to be successful. Aptos is aggressively building partnerships and developing new projects. A prominent partnership is with Circle, which issues the USDC stablecoin. This integration simplifies how users access and use stablecoin within the Aptos community.
These programs aim to provide a variety of financial services available to users online in a permissionless, decentralized, and transparent way.
Hurdles Ahead: The SEC Approval Process
The S-1 filing is only the initial phase of a potential multi-month approval process. Bitwise must also file a 19b-4 form for its Aptos ETF application. The SEC is then given 240 days to either approve it, deny it, or ask for more information. Note that the securities regulator’s decisions have a considerable amount of uncertainty.
1/ @BitwiseInvest has filed an S-1 with the U.S. Securities and Exchange Commission to register a potential Aptos ETF.
This filing is the initial step toward offering an ETF linked to Aptos in the U.S. market. pic.twitter.com/cYTViiIW5p
— Aptos (@Aptos) March 5, 2025
“The SEC’s decision on the Aptos ETF will be closely watched because it has the potential to set an important precedent for subsequent altcoin ETFs in the U.S.”, reported by News Room on March 06, 2025.
Considerations for Staking and Custody
Bitwise, however, has opted to exclude a staking provision in the Aptos ETF to address regulatory concerns about potential risks to the underlying asset. Staking, in which users earn rewards for holding and “staking” their cryptocurrency rather than selling it, can add complications to ETF structures and raise concerns with the SEC.
The spot Aptos ETF has listed Coinbase Custody as its proposed custodian, which is a trusted name in the industry with expertise in managing digital assets for institutional clients.
Market Response: Rise in APT Price
The APT price surged immediately following Bitwise’s Aptos ETF application, gaining more than 18% in a day and reaching $6.48. This points to investor interest surrounding potential future access to be gained via a regulated investment vehicle for Aptos.
The filing from Bitwise for an Aptos ETF follows a trend of rising interest in altcoin-ETFs. The growing institutional interest in alternative cryptocurrencies highlights the evolving nature of the digital asset landscape, where investors are looking beyond Bitcoin and Ethereum for new opportunities.
What is the Synthesis of an Approved Aptos ETF
The SEC approval of Bitwise’s Aptos ETF may have many implications, including:
- Wider Adoption: An ETF would provide Aptos with broader accessibility to retail and institutional investors, thereby driving wider use of the Aptos blockchain and its native token.
- Price Discovery: There are arguments for why the advent of an ETF would be good for APT, primarily because it could act as a market maker and contribute to price discovery.
- Aptos Validation: Approval of an Aptos ETF would be a strong vote of confidence in the Aptos network, reinforcing and expanding positive perception in the competitive blockchain landscape.
- Precedent for Other Altcoins: With a successful Aptos ETF event, it could create a pathway for more altcoins to follow suit in getting the green light for their ETFs, helping integrate digital assets further within traditional finance.
More News: Bitwise Launches Solana Staking ETP (BSOL) in Europe
The move to introduce a spot Aptos ETF from Bitwise could mark a significant moment in the evolution of the cryptocurrency market. As of June 2024, the SEC had yet to confirm its decision. Should this ETF be approved, it would mark a potential milestone in the path towards mainstream adoption of altcoins in traditional financial markets.
This article first appeared at CryptoNinjas
