Bitwise has officially filed for an S-1 registration with the U.S. Securities and Exchange Commission (SEC) following its Aptos ETF trust registration in Delaware on February 28. The filing seeks regulatory approval for a spot Aptos ETF, aiming to bring more institutional investors into the altcoin market.
Bitwise Expands Beyond Bitcoin and Ethereum
Bitwise continues to expand its investment scope beyond Bitcoin (BTC) and Ethereum (ETH). The firm has previously applied for spot ETFs in Solana (SOL), XRP, and Dogecoin (DOGE). However, the Aptos ETF stands out due to its relatively lower market capitalization—currently ranked 36th in the crypto market—making it an unusual choice for an institutional investment vehicle.
Aptos, a Layer-1 blockchain, was developed by former Meta employees Mo Shaikh and Avery Ching and entered the market in October 2022. It was launched as a rival to Solana, although its $3.8 billion market value remains significantly smaller than Solana’s.
Aptos ETF Details: Custody, Staking, and Regulatory Challenges
The Bitwise Spot Aptos ETF will store its assets with Coinbase Custody, a well-known institutional crypto custodian. Despite Aptos operating on a proof-of-stake (PoS) blockchain, staking will not be offered in the ETF.
Additionally, Bitwise has not disclosed fund fees or the intended listing market for the ETF. The 19b-4 filing process remains mandatory before the SEC begins its 240-day review period. The SEC’s acceptance of the filing kicks off a lengthy approval process that could take several months.
Historically, crypto ETF approvals have faced regulatory hurdles. While Spot Bitcoin and Ethereum ETFs have successfully entered the market, the SEC has been hesitant to approve ETFs for lower-market-cap cryptocurrencies, citing concerns over security risks and market instability. Given Aptos’ position in the rankings, regulatory scrutiny is expected to be intense.
Why Aptos? Bitwise’s Strategy in the Expanding Crypto ETF Market
Bitwise’s decision to pursue an Aptos ETF is unusual, as the firm generally focuses on top-tier cryptocurrencies based on market capitalization. Aptos ranks 11th in total value locked (TVL) with $1.03 billion, according to DeFiLlama.
Recently, Franklin Templeton leveraged Aptos’ blockchain to digitize its OnChain US Government Money Fund, signaling growing institutional interest. Additionally, Bitwise had already launched an Aptos Staking ETP on the SIX Swiss Exchange in November 2024, offering a 4.7% staking yield.
If approved, the Bitwise Aptos ETF would become the first U.S. spot ETF for Aptos, allowing institutional investors to gain direct exposure without needing to own or store the token. This move could significantly enhance Aptos’ market credibility and liquidity.
Will the SEC Approve Bitwise’s Aptos ETF?
The Bitwise Aptos ETF filing marks a major step forward in broadening institutional cryptocurrency investment beyond BTC and ETH. However, regulatory approval remains uncertain, given Aptos’ lower market cap and the SEC’s cautious approach to smaller cryptocurrencies.
If the SEC approves the ETF, it could set a precedent for other lower-cap crypto ETFs seeking regulatory acceptance. Conversely, a rejection would reinforce the notion that only the most dominant cryptocurrencies can secure ETF status.
As the crypto industry awaits the SEC’s decision, all eyes remain on how this ruling could reshape the future of institutional investment in altcoins.
