Surge in ETF Filings: Will the SEC Approve APT, HBAR, and DOT ETFs?

With former U.S. President Donald Trump signaling support for crypto, the industry has seen a surge in exchange-traded fund (ETF) filings, reaching 47 active applications in the U.S., according to Binance Research Insights. These filings span 16 categories of virtual digital assets (VDAs), including memecoins. While renewed optimism for digital asset regulation has driven momentum for token-based ETFs, the new approval framework is still unfolding, leaving timelines uncertain.

Bitwise’s Spot Aptos (APT) ETF Filing

Wealth management firm Bitwise has officially filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) to launch a spot Aptos (APT) exchange-traded fund (ETF). This move follows its Delaware registration of the “Bitwise Aptos ETF” last week.

If approved, the Bitwise Aptos ETF would offer investors direct exposure to APT, the native token of the Aptos blockchain. This marks another significant step toward integrating layer-1 blockchain assets into traditional financial markets.

What is Aptos (APT)?

Aptos is a layer-1 blockchain designed for scalability, security, and efficiency in decentralized applications (dApps). It uses the Move programming language, developed by former Meta engineers, to enhance smart contract safety and performance.

Despite its potential, Aptos remains a high-risk asset. It is currently ranked 36th by market capitalization, with a total market value of $3.7 billion. The token has experienced significant volatility but continues to attract developers and liquidity providers in the DeFi sector.

Inside Bitwise’s APT ETF Filing

The S-1 registration is a crucial step toward launching the ETF. However, the fund will also require a 19b-4 filing, signaling a rule change at the exchange where it plans to list.

According to the filing, the Bitwise Aptos ETF will:

• Hold APT tokens and track the CF Aptos–Dollar Settlement Price as a pricing benchmark.
• Issue and redeem ETF shares in blocks of 10,000 units (“Baskets”).
• It will be managed by Bitwise with an annual management fee (rate not disclosed yet).
• Use Coinbase Custody Trust Company, LLC, as its main custodian.

The ETF will be cash-settled, and APT holdings will be stored in cold wallets, ensuring security and regulatory compliance.

Nasdaq’s 19b-4 Filing for Canary HBAR ETF

Nasdaq has filed Form 19b-4 with the SEC to list and trade the Canary HBAR ETF. If approved, this ETF will track the spot price of Hedera’s native cryptocurrency, HBAR, offering investors direct exposure to the asset.

This move follows Canary Capital’s launch of the first U.S. HBAR Trust in October 2024 and an S-1 registration for an HBAR ETF in November 2024. With both filings now under SEC review, a spot HBAR ETF may be on the horizon.

What is Hedera (HBAR)?

Hedera is a decentralized public network that employs the Hashgraph consensus mechanism, distinguishing itself from traditional blockchain technology. This design enables high throughput and low latency, making it capable of handling transactions swiftly and securely. The network is governed by prominent enterprises like Google, IBM, and Boeing, ensuring stability and transparency in its operations.

HBAR is the native cryptocurrency of the Hedera network. It serves several essential functions, such as facilitating transactions for decentralized applications, paying for network services, and maintaining security. HBAR is integral to the network's Proof-of-Stake system, where it can be staked to enhance network security and achieve consensus. Additionally, HBAR supports smart contracts, tokenization, and the development of decentralized applications (dApps), offering low and predictable transaction fees.

Why Does This Filling Matter?

• The S-1 form is required for securities registration.
• The 19b-4 form signals that Nasdaq wants to list the ETF.
• SEC approval of both would allow public trading of the Canary HBAR ETF.

Why Hedera (HBAR) and Why Now?

Hedera’s fundamentals make it a strong candidate for a spot ETF. Unlike many cryptocurrencies, HBAR is not classified as a security by the SEC.

Key factors supporting an HBAR ETF:

• Regulatory clarity – HBAR is not considered a security.
• Enterprise adoption – Companies use Hedera for real-world applications.

If approved, the Canary HBAR ETF would provide mainstream investors direct exposure to HBAR, boost liquidity, and pave the way for more altcoin ETFs in the future.

Grayscale’s Push for a Polkadot ETF

The race to bring a Polkadot (DOT) ETF to the market is heating up. Grayscale Investments, one of the largest crypto asset managers, has officially entered the game. Nasdaq has filed a Form 19b-4 with the SEC on behalf of Grayscale, seeking approval to list a Polkadot ETF on Nasdaq.

What is Polkadot (DOT)?

Polkadot (DOT) is an open-source multi-chain protocol that facilitates interoperability between different blockchain networks. Its architecture allows for the operation of multiple specialized blockchains, known as parachains, which can run in parallel and efficiently exchange information. Polkadot uses a Nominated Proof-of-Stake (NPoS) consensus mechanism to ensure network security and consensus. The unique feature of Polkadot is its ability to process many transactions on different chains simultaneously, significantly increasing scalability compared to single-chain systems. 

DOT, Polkadot's native token, has several functions, including governance, staking for network security, and bonding parachains. Unlike Bitcoin, DOT is inflationary, with a targeted inflation rate of around 10% per year and no maximum supply. This inflation incentivizes staking and supports ongoing network developments.

Potential Benefits of a Polkadot ETF:

A spot Polkadot ETF would allow investors to trade DOT on traditional stock markets without having to directly buy or store the token. This will led to:

• Institutional Adoption – A regulated ETF could attract hedge funds and asset managers.
• Increased Liquidity – More investment inflows could stabilize DOT’s price.
• Regulatory Clarity – This could signal broader acceptance of altcoin ETFs.
• Easier Access – Investors could trade DOT directly from brokerage accounts.

However, the SEC’s stance on altcoin ETFs remains uncertain. While Bitcoin and Ethereum ETFs have gained regulatory approval, altcoins still face legal scrutiny.

Will the SEC Approve These ETFs?

While renewed optimism for digital asset regulation has driven momentum for token-based ETFs, the new approval framework is still unfolding, leaving timelines uncertain. The SEC’s approach to altcoin ETFs is evolving. Under previous leadership, the agency aggressively pursued lawsuits against crypto firms. However, the current administration appears more open to crypto-based financial products.

The approval or rejection of XRP, Solana, and Cardano ETFs, which Grayscale is also pursuing, could set the tone for Polkadot’s chances. A positive ruling on any of these could pave the way for other altcoin ETFs, including Aptos and Hedera.

The next key deadline is the 45-day review period after Nasdaq’s filings. During this time, the SEC will evaluate the filings and determine their fate. If the decision is extended, the process could take several months.

As institutional interest in crypto assets grows, the SEC’s response to these filings could shape the future of crypto ETFs beyond just Bitcoin and Ethereum. 

It's important to keep in mind that in this rapidly evolving landscape, projects with substantial market capitalization, such as APT, HBAR, and DOT, will continue to lead the way. These projects not only exhibit strong fundamentals but also have a greater chance of attracting institutional interest and potentially gaining approval for spot ETFs. This could further enhance their long-term growth potential.