First-Ever Aptos ETF? What We Know

The crypto ETF market is expanding beyond Bitcoin and Ethereum. Bitwise Asset Management has taken a key step toward launching the first Aptos (APT) exchange-traded fund (ETF) in the U.S. by filing a Delaware trust entity registration. While this is not yet an official SEC filing, it marks the beginning of a potential new investment vehicle for Aptos.

If approved, this ETF would allow institutional and retail investors to gain exposure to Aptos (APT) tokens without directly managing the cryptocurrency. 

Here’s what we know so far.

Bitwise Moves Toward an Aptos ETF

On February 25, Bitwise registered the "Bitwise Aptos ETF" entity in Delaware. This type of registration is a precursor to filing an S-1 form with the U.S. Securities and Exchange Commission (SEC). The S-1 filing would provide details on how the ETF will be structured, its investment strategy, and how it will track Aptos.

Bitwise has been actively expanding its crypto ETF offerings. In November 2023, the firm launched the Bitwise Aptos Staking ETP on six Swiss exchanges. The company also filed for a Dogecoin ETF in January 2024, signaling a strong push toward altcoin-based investment products.

The Aptos ETF, if approved, would be the first U.S.-based fund holding APT tokens, giving investors a regulated way to access Aptos without the complexities of self-custody.

Why This Filing Matters

1. Expanding Beyond Bitcoin and Ethereum ETFs

For years, Bitcoin and Ethereum have dominated the ETF space. But now, asset managers are exploring ETFs for alternative cryptocurrencies like Solana (SOL), XRP, Cardano (ADA), Litecoin (LTC), Dogecoin (DOGE), and Hedera (HBAR).

Bitwise’s Aptos ETF filing reflects a broader trend of altcoin ETFs gaining traction. Just this week, Grayscale filed a 19b-4 proposal for a Polkadot ETF, and Canary Capital applied for a spot HBAR ETF.

2. Institutional Interest in Aptos

Aptos is currently the 36th largest cryptocurrency by market capitalization, according to CoinGecko. While it is not among the top five cryptocurrencies, its unique technology has caught the attention of institutional investors.

Aptos was created by former Meta (Facebook) engineers who previously worked on the now-defunct Diem blockchain project. It is a Layer 1 blockchain designed for scalability, security, and efficiency, using the Move programming language developed for Diem.

The push for an Aptos ETF suggests that investors are looking beyond Bitcoin and Ethereum, seeing potential in next-generation blockchain infrastructure.

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 detailing the ETF’s structure

• Information on how it will track Aptos prices

• Risk disclosures and compliance measures

The SEC will then review the application. The process can take several months, during which the SEC may approve, reject, or request modifications to the proposal.

Potential Impact on the Crypto Market

A U.S.-approved ETF would provide easier access to Aptos for investors, potentially boosting APT’s trading volume and liquidity.

A similar pattern was seen with Bitcoin spot ETFs, which drove institutional adoption and record inflows into BTC investment products.

Ethereum has long been the dominant Layer 1 blockchain, but Aptos offers a faster and more scalable alternative. An ETF could elevate Aptos’ status, bringing more developer interest and partnerships.

Though, the SEC’s stance on non-Bitcoin and non-Ethereum ETFs remains unclear, though things might change under the current administration.