Bitwise, a renowned wealth management firm, has officially filed an S-1 form with the U.S. Securities and Exchange Commission to launch a spot exchange-traded fund (ETF) based on Aptos (APT).
What is Aptos (APT)?
Aptos is a layer-1 blockchain designed for scalability, security, and efficiency in decentralized applications (dApps). It uses the Move programming language, developed by former Meta engineers, to enhance smart contract safety and performance. However, Aptos remains a high-risk asset, currently ranked 36th by market capitalization, with a total market value of $3.7 billion. The token has experienced significant volatility but continues to attract developers and liquidity providers in the DeFi sector.
Inside Bitwise’s APT ETF Filing
The S-1 registration is a crucial step toward launching the ETF, allowing Bitwise to issue new securities and list them on a public exchange. However, the fund will also require a 19b-4 filing, signaling a rule change at the exchange where it plans to list. According to the filing, the Bitwise Aptos ETF will:
* Hold APT tokens and track the CF Aptos–Dollar Settlement Price as a pricing benchmark. * Issue and redeem ETF shares in blocks of 10,000 units (“Baskets”). * Be managed by Bitwise with an annual management fee (rate not disclosed yet). * Use Coinbase Custody Trust Company, LLC as its main custodian.
The ETF will be cash-settled, and APT holdings will be stored in cold wallets. Transactions will be limited to whitelisted addresses, ensuring security and regulatory compliance.
Aptos ETF: A First for U.S. Markets
While Europe has already seen crypto-staking ETFs, including APT-based products launched on Swiss exchanges, the Bitwise Aptos ETF would be the first APT spot ETF in U.S. markets. This ETF aims to attract institutional and retail investors looking for regulated exposure to Aptos without the need for direct crypto custody. However, Bitwise warns in its prospectus: "Aptos is a relatively new technological innovation with a limited history. There is no assurance that usage of the Aptos Blockchain or Aptos will continue to grow."
Bitwise's ETF filing marks a growing interest in incorporating emerging layer-1 blockchains into traditional financial markets. Approval of the ETF could enhance Aptos's liquidity and adoption, especially with potential support from major market players.
