ARK Invest, Led by Cathie Wood, Seeks SEC Approval for Pioneering Ethereum (ETH) Spot ETF

ARK Invest and 21Shares have officially submitted their application for regulatory approval to launch an innovative exchange-traded fund (ETF) known as the Ark 21Shares Ethereum ETF. This groundbreaking ETF aims to directly hold the digital asset Ethereum (ETH), which currently stands as the second-largest cryptocurrency by market capitalization.

Notably, the custody of the ETF’s assets will be entrusted to Coinbase Custody Trust Company, a well-established name in the crypto industry.

Initially, this announcement had a positive impact on the prices of both ether and bitcoin. However, the crypto market quickly reverted to its previous price levels after the initial excitement.

It’s important to mention that this filing comes on the heels of a series of applications for a coveted spot bitcoin ETF, including a joint effort by Ark and 21Shares. The SEC, in a recent decision, opted to delay its ruling on all these applications.

Furthermore, this development precedes the anticipated SEC approval of the first-ever futures-based ether ETF. The SEC is expected to announce its decision on or before mid-October.

Also See:

• El Salvador Grants Binance Licenses for Crypto Business Activities.
• U.S. Federal Reserve Launches New Oversight Program for Cryptocurrency Activities in Banks

In the wake of Grayscale’s recent legal victory against the SEC, the industry is poised to advocate for more crypto ETFs. A spot ETH ETF is expected to be a top contender, as it shares a market structure similar to BTC, featuring actively traded futures and spot markets on the Chicago Mercantile Exchange (CME), a significant regulated marketplace favored by institutional investors.