Bitwise Asset Management is taking steps towards creating the first Aptos (APT) exchange-traded fund in the U.S., potentially opening new avenues for investors looking to gain exposure to Aptos tokens without direct management.
Bitwise Moves Toward an Aptos ETF
On February 25, Bitwise registered the 'Bitwise Aptos ETF' entity in Delaware. This registration is a precursor to filing an S-1 form with the U.S. Securities and Exchange Commission (SEC). The S-1 filing will provide details on the ETF’s structure, its investment strategy, and how it will track Aptos. In November 2023, Bitwise launched the Bitwise Aptos Staking ETP on six Swiss exchanges.
Why This Filing Matters
Bitcoin and Ethereum ETFs have long dominated the market, but now asset managers are exploring ETFs for alternative cryptocurrencies. Bitwise’s filing for an Aptos ETF reflects a broader trend of increasing interest in altcoin ETFs. Aptos, the 36th largest cryptocurrency by market capitalization, attracts institutional investor attention due to its unique technology and its connection to former Meta engineers.
How the Approval Process Works
After the Delaware trust registration, Bitwise will need to submit a full ETF application to the SEC. This includes a prospectus that details the ETF’s structure, how it will track Aptos prices, risk disclosures, and compliance measures. The SEC will review the application over several months, during which it may approve, reject, or request modifications to the proposal.
The creation of a U.S.-based Aptos ETF could offer easier access to this cryptocurrency for investors, potentially boosting APT's trading volume and liquidity. Similar ETFs have previously changed the landscape for Bitcoin and Ethereum, and Aptos could follow.
