Bitwise requests SEC approval for Spot Aptos ETF, causing $APT price to increase
Bitwise, a cryptocurrency-focused investment management company, has filed with the U.S. Securities and Exchange Commission, or SEC, for a spot Aptos (APT) exchange-traded fund, ETF, resulting in a significant boost in the token’s value. This action by Bitwise was proceeded by the establishment of a “Bitwise Aptos ETF” entity in Delaware, setting in motion the potential creation of a new ETF.
In their Prospectus Summary, Bitwise emphasized the utility of the Aptos network’s APT token as a non-security digital asset with various uses. They clarified that since APT is classified as a non-security, it falls outside the jurisdiction of U.S. federal securities laws. In addition to its utility in executing transactions on the network, the APT coin has payment functionality that extends to purchasing goods and services, providing flexibility in various transactions. The blockchain platform leverages innovative features, including the integration of the Move programming language to ensure secure smart contract applications with optimal transaction speeds.
In comparison to Bitcoin’s Proof-of-Work model, Aptos employs a PoS, Proof-of-Stake, system where network validators work based on their holdings of APT coins, enhancing energy efficiency while maintaining network security. This distinction underscores the technological advancements and sustainable practices embedded in the Aptos ecosystem.
Following the news of Bitwise’s filing, the APT token experienced a surge in value, reaching $6.50 before stabilizing at $6.19 the next day, marking a substantial 12% increase over 24 hours according to CoinGecko data. The Aptos mainnet’s launch in late 2022 heralded a period of testing, culminating in the APT token’s previous all-time high of nearly $20 in 2023, although it encountered subsequent price fluctuations. Despite the peaks and troughs experienced by the APT coin, it is distinguished among altcoins for its practical utility, particularly within blockchain applications.
The prospect of an Aptos ETF has spawned mixed reactions within the cryptocurrency community. While some users express skepticism about the suitability of the APT token for institutional offerings due to its relatively low market cap and volume, others perceive it as a step forward for the Aptos network. These differing viewpoints highlight the diverse perspectives within the crypto community regarding the potential ETF approval for APT.
The move by Bitwise to pursue an APT ETF aligns with the broader trend of investment institutions seeking to expand their offerings to include a range of cryptocurrencies beyond established tokens like Bitcoin. This development underscores the evolving landscape of cryptocurrency investment products and the increasing role of altcoins in the digital asset market. With Bitwise already exploring ETFs for popular cryptocurrencies like Dogecoin, XRP, and Solana, the potential ETF for APT signals a growing interest in altcoins with practical utility and innovation.