Bitwise Files for Aptos ETF, Aptos Price Jumps 18%

Bitwise Asset Management has filed an S-1 application with the U.S. Securities and Exchange Commission (SEC) to launch a spot Aptos exchange-traded fund (ETF). This move is part of Bitwise’s broader strategy to expand its ETF offerings beyond Bitcoin and Ethereum, signaling a growing interest in alternative cryptocurrencies. The news of the filing has sparked a significant positive reaction from investors, driving the price of Aptos (APT) up considerably.

Bitwise’s decision to file for an Aptos ETF comes after the company registered a trust related to the Aptos ETF in Delaware on February 28th. This filing is part of Bitwise’s broader strategy to launch ETFs for major cryptocurrencies, including Bitcoin (BTC), Ether (ETH), Solana (SOL), XRP, and Dogecoin (DOGE). Aptos, currently the 36th largest cryptocurrency by market cap, is an intriguing choice given its relatively early stage of development compared to other cryptocurrencies targeted by Bitwise. The rationale behind this choice appears to be Bitwise’s belief in the long-term potential of Aptos’s technology and ecosystem. Aptos’s parallel execution engine, Block-STM, enables it to achieve a transaction speed of over 130,000 transactions per second (TPS) at a low cost, making it a strong contender in the competitive layer-1 space.

The Aptos blockchain employs a parallelization engine called Block-STM, which allows transactions to be processed simultaneously, increasing the network’s throughput. This innovative approach enhances efficiency and scalability, setting Aptos apart from traditional blockchain models that face bottlenecks due to sequential transaction processing. Aptos is also actively building partnerships and developing new projects, with a prominent partnership being with Circle, which issues the USDC stablecoin. This integration simplifies how users access and use stablecoin within the Aptos community, providing a variety of financial services in a permissionless, decentralized, and transparent way.

The S-1 filing is 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. The securities regulator’s decisions have a considerable amount of uncertainty, and the outcome of this filing will be closely watched as it has the potential to set an important precedent for subsequent altcoin ETFs in the U.S.

Bitwise 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.

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.

The SEC approval of Bitwise’s Aptos ETF may have several implications. 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. 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. 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. 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.