Bitwise files to list a spot Aptos ETF — the 36th largest cryptocurrency

Crypto asset manager Bitwise is making headlines with its latest move to further diversify its offerings in the rapidly evolving cryptocurrency landscape. On March 5, 2023, Bitwise submitted an S-1 registration statement to the U.S. Securities and Exchange Commission (SEC) for a spot Aptos exchange-traded fund (ETF). This initiative comes just eight days after the company registered a trust related to the Aptos ETF in Delaware on February 28, signaling its commitment to introducing this new financial product.

Aptos: The New Contender in Crypto

The Aptos blockchain itself was launched in October 2022 and is designed by a team led by Mo Shaikh and Avery Ching, both former Facebook employees. Aptos has been described as a "high-speed, low-cost" layer-1 blockchain, attracting attention as a potential competitor to established blockchains like Solana. Despite these ambitious claims, Aptos currently holds the 36th position in the market capitalization hierarchy, valued at roughly $3.8 billion, a fraction of Solana’s market cap, which highlights the challenges it faces in gaining widespread adoption.

Bitwise’s Strategic Approach

In its filing, Bitwise has notably chosen to exclude any staking features from the proposed Aptos ETF, opting instead to name Coinbase Custody as the intended custodian. Details regarding the specific stock exchange for listing and the ETF’s proposed ticker symbol have not yet been disclosed. Additionally, the crypto asset manager will need to file a 19b-4 form to allow the SEC to commence its review process, which starts a 240-day timeline for the regulator to render a decision on the application.

Bitwise’s move comes as part of its larger strategy to expand beyond its current offerings, which include spot Bitcoin (BTC) and Ether (ETH) ETFs. It has also filed for ETFs in recent months that focus on other popular crypto assets, including Solana (SOL), XRP, and Dogecoin (DOGE). The inclusion of Aptos in their portfolio represents a bold step, as it targets a blockchain that remains relatively under the radar when compared to major cryptocurrencies.

Market Dynamics and Future Potential

Since the filing, the APT token has demonstrated significant price movement, with a 14.4% increase over the last 24 hours, now trading at approximately $6.25. This rise could suggest renewed interest in the token as market participants respond to Bitwise’s initiatives. Currently, Aptos boasts the 11th largest total value locked among blockchains at $1.03 billion, with a substantial portion, over $830 million, held in stablecoin form.

In addition, the Aptos blockchain has begun to attract real-world assets, such as the Franklin OnChain US Government Money Fund (FOBXX), which has been tokenized on its platform. Such developments could enhance Aptos’s credibility and usability, potentially increasing its market viability.

Bitwise’s previous ventures into the Aptos ecosystem are also noteworthy. The company launched the world’s first Aptos Staking ETP on Switzerland’s SIX Swiss Exchange in November, offering a competitive 4.7% staking yield. This indicates a growing familiarity and strategic positioning within the Aptos framework, distinguishing Bitwise in an increasingly crowded space.

Overall, with the filing of the Aptos ETF and other similar initiatives, Bitwise is not only expanding its product suite but also contributing to the ongoing maturation of the cryptocurrency investment landscape. The reception from regulators and investors alike will be crucial in shaping the future trajectory of both Aptos and Bitwise’s expansion efforts.