Bitwise Moves a Step Closer to Launching an Aptos (APT) ETF

input: Bitwise moved a step closer to launching an Aptos ETF, after filing an S-1 form with the US Securities and Exchange Commission (SEC). Bitwise moved forward just days after registering its fund in Delaware.

Bitwise is moving closer to launching an Aptos ETF, after filing an S-1 form with the US Securities and Exchange Commission (SEC). The new filing comes less than a week after Bitwise registered its funds in Delaware.

An Aptos ETF by Bitwise is in the works, and the firm took a step closer with the S-1 filing. Bitwise filed the document as a preliminary prospectus, and the fund’s parameters may be subject to change.

The new filing arrives less than a week after Bitwise established its funds with a Delaware registration.

The filing announcement added to the recent growth of the Aptos native token APT, rising by 15% in the past day. APT traded at $6.33, nearing its lower range, despite the short-term recovery. APT is linked to one of the growing L1 chains, aiming to gain a piece of the DeFi market and serve as a growth platform.

APT is also an asset under consideration for Grayscale, though it has been waiting for a new fund for months. APT remains highly risky, though it has shown an ability for outsized rallies.

The Aptos chain carries over $996M in liquidity linked to DeFi apps. Aptos is a non-EVM compatible chain and offers its own mix of DEX and DeFi lending protocols. While the ecosystem is not linked to Ethereum, it can still retain liquidity.

APT is ranked 36th based on market capitalization and has not moved up among older blue-chip tokens. Only 45% of the APT supply is unlocked, with linear unlocks of tokens for core contributors and early investors. APT has a market capitalization of around $3B, though the fully diluted valuation is over $7B. The tokens are vested for the long term, with unlocks running into 2032 and creating potential price pressure.

Bitwise expands its list of core ETF

Bitwise already carries a total of seven ETFs, both single-asset and multi-token. The Bitwise ETF offers a mix of crypto assets and treasuries to offset risk.

The available ETFs have varied performance, and Bitwise has offered high-risk assets in its Web3 fund. APT is so far the riskiest single asset offered by Bitwise.

“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. A contraction in the use or adoption of Aptos may result in increased volatility or a reduction in the price of Aptos, which could adversely impact the value of the Shares,” warned Bitwise in the preliminary prospectus.

The new ETF will use the services of Coinbase Custody Trust Company, LLC as its main custodian. For now, the fund has not selected a Cash Custodian for any proceeds of selling APT.

APT in the fund will be held in dedicated cold storage wallets. The Custodian will only interact with whitelisted addresses after test transactions to avoid losses. The fund will be settled in cash and will sell its shares in baskets of 10,000. Currently, the ETF fees have not been announced, and the S-1 form may be amended.

Aptos is on a growth track in 2025

Aptos was one of the most ambitious projects, launched at the peak of the previous bull cycle. The L1 chain raised $350M from Tier-1 funds, but in time it was overtaken by the FTX fallout and the prolonged bear market.

Aptos is showing signs of recovery, with both user and revenue growth. APT accrued 36.7M holders, with close to 17M weekly active users. The Aptos chain produces $38.56K in weekly revenues from transaction fees. The chain currently pays out significant subsidies to its block producers, valued at over $7M on a weekly basis. Aptos has one of the most unfavorable ratios of subsidies to fee generation, though the chain is still in its early stages of subsidizing ecosystem participants.

Aptos also carries over $833M in stablecoin liquidity, with native USDT launched on the chain. The presence of a version of Tether’s stablecoin is seen as a sign of higher liquidity and the potential to grow the chain’s user base.

The ecosystem has also hinted at an airdrop, with still-uncertain parameters. APT may see increased attention in the future, though it remains one of the niche assets when it comes to ETF creation.

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