ARK Invest and 21Shares Seek Spot Ether ETF Approval Amid SEC Delays

As the United States Securities and Exchange Commission (SEC) continues to deliberate over ARK Investment Management’s spot Bitcoin exchange-traded fund (ETF), the asset management firm has ventured into another avenue by proposing an investment product linked to Ethereum.

In a filing submitted on September 6, ARK Invest and 21Shares jointly petitioned the SEC for the green light to list shares of a spot Ether ETF on the Cboe BZX Exchange. This investment vehicle, known as the ARK 21Shares Ethereum ETF, will enlist crypto exchange Coinbase to serve as its custodian and will assess Ether’s performance based on the Chicago Mercantile Exchange CF Ether-Dollar Reference Rate.

The request made by ARK Invest and 21Shares is part of a growing wave of spot cryptocurrency ETFs under SEC review. The recent legal victory by asset manager Grayscale, which compelled the SEC to reconsider its stance on converting the Grayscale Bitcoin Trust into a Bitcoin ETF, has buoyed hopes among industry players regarding regulatory approval.

On August 31, two days after the decision regarding Grayscale’s ETF, the SEC announced a postponement in deciding whether to greenlight or deny spot Bitcoin ETF applications from seven firms, including BlackRock, the world’s largest asset manager. Notably, the spot Bitcoin ETF proposal from ARK Invest and 21Shares was excluded from this delay, with its next deadline for approval, denial, or further delay scheduled for November 11.

The ARK Invest and 21Shares collaboration represents their third attempt to launch a spot Bitcoin ETF since 2021. In addition to this recent Ether ETF proposal, the firms had also put forward plans for two ETH futures ETFs. ETFs tied to cryptocurrency futures have experienced more favorable outcomes with the SEC, having secured several approvals in 2021.

The announcement of the ETF filing spurred a brief uptick in the price of Ether (ETH). According to data ETH witnessed an approximate 3% surge, climbing from $1,623 to $1,669, before settling within the range of $1,620 to $1,640. This move underscores the significant market interest and anticipation surrounding the potential approval of an Ether ETF by the SEC.

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