Amid Bitcoin ETF Buzz, ARK Invest & 21Shares File For Ether Exchange-Traded Funds

Initially, this announcement triggered an upswing in the prices of both Ether and Bitcoin.

This development comes on the heels of a wave of applications seeking SEC approval for highly sought-after spot Bitcoin ETFs

Source : Bastian Riccardi/Pixabay

In a recent development, asset management firms ARK Invest and 21Shares have submitted a formal request for regulatory approval of an exchange-traded fund (ETF) aimed at directly holding ether (ETH). This move was disclosed in a filing made to the US Securities and Exchange Commission (SEC) on Wednesday.

The proposed ETF, named the Ark 21Shares Ethereum ETF, marks a pioneering effort in the United States to introduce a fund that directly channels investments into ETH, the second-largest cryptocurrency by market capitalization. The assets held within this ETF would be under the safekeeping of the Coinbase Custody Trust Company.

Initially, this announcement triggered an upswing in the prices of both Ether and Bitcoin. However, this bullish rally was short-lived, and both cryptocurrencies subsequently reverted to levels observed before the filing.

This development comes on the heels of a wave of applications seeking SEC approval for highly sought-after spot Bitcoin ETFs, including a joint endeavour by ARK Invest and 21Shares. Last week, the SEC decided to postpone decisions on all these applications.

Furthermore, anticipation is building around the forthcoming SEC decision regarding the first futures-based Ether ETF, with an announcement expected by mid-October at the latest. Market observers predict that the industry will advocate for more cryptocurrency ETFs, buoyed by the recent legal victory of trust issuer Grayscale against the SEC.

According to a report by brokerage firm Bernstein, a spot ETH ETF is poised to be a prominent contender, given its structural similarity to Bitcoin, complete with actively traded futures and spot markets hosted on the Chicago Mercantile Exchange (CME), a significant regulated platform for institutional investors. 

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.