Bitwise Prepares Aptos ETF – Competition for Altcoin Funds Intensifies

Bitwise prepares Aptos ETF – Competition for altcoin funds intensifies

The US provider Bitwise is known for crypto index funds and seeks SEC approval for an Aptos ETF as part of its expansion strategy. The move to create a new investment model, Aptos Linked Trust, is also a response to the acute challenges faced by the crypto industry this year.

Bitwise wants to position Aptos ETF in a growing market

The US regulatory authority SEC has filed documents from Bitwise which aim to approve an ETF based on Aptos (APT). Aptos is a young layer 1 blockchain known for its high transaction speeds, originating in part from the Facebook development project Diem (formerly Libra). According to Bitwise, an Aptos ETF would be the first publicly traded investment in this altcoin, which always signals a moment of maturity and investor interest for still young cryptocurrencies.

The arguments and competitors for Bitwise and Aptos

Bitwise argues that its planned ETF for Aptos is also justified by the recently observable decoupling of at least some altcoins from the price trends shaped by Bitcoin. Aptos has indeed brought itself into the headlines with developments, among other things through integrations with emerging ecosystems such as Sui and movements towards decentralized finance (DeFi). However, even Aptos, which was only launched in October 2022, could not completely avoid the deep red price trends of the year.

For Bitwise, which experienced a fiasco with its main market Bitcoin ETFs because Grayscale gained the upper hand with its BTC Spot ETF, an Aptos ETF is a way to stay ahead in the largely undefined market for altcoin funds. While Galaxy Digital and Hashdex have positioned themselves as serious providers for Ethereum and other cryptos, some US courts are currently working to bring clarity to the legal environment for spot ETFs.

Conclusion

Bitwise wants to offer itself with its planned Aptos ETF both as a companion in a purely analytical investment and a new base product for altcoins. Given that crypto prices themselves are still flat in the longer term, Bitwise chooses its time of expansion consciously. Whether its Aptos ETF finds support from the SEC and investors, time will tell, but Aptos could develop into more than just an exotic representative in crypto portfolios, similar to Polkadot.