ARK Investment Management has submitted a proposal to the United States Securities and Exchange Commission (SEC) for the approval of a spot Ethereum exchange-traded fund (ETF). This comes as the SEC delays its decision on ARK’s spot Bitcoin ETF. The proposed investment vehicle, called the ARK 21Shares Ethereum ETF, would provide exposure to Ether and would be listed on the Cboe BZX Exchange. The custodian for the ETF would be crypto exchange Coinbase, and its performance would be measured based on the Chicago Mercantile Exchange CF Ether-Dollar Reference Rate.
The submission from ARK Invest and 21Shares is just one of several spot crypto ETFs under review by the SEC. Following a recent appeal won by asset manager Grayscale, requiring the SEC to reconsider its decision on the conversion of its Bitcoin Trust into a Bitcoin ETF, many firms are optimistic about regulatory approval. In fact, the SEC recently announced a delay in deciding whether to approve or deny spot Bitcoin ETF applications from seven different firms, including BlackRock, the largest asset manager in the world. The ARK Invest and 21Shares spot Bitcoin ETF, however, was not included in this delay and is set for a deadline on November 11.
This is the third attempt by ARK Invest and 21Shares to launch a spot Bitcoin ETF since 2021. As an alternative, the companies proposed the listing of two Ethereum futures ETFs in August. ETFs linked to crypto futures have had more success with the SEC, with several approvals granted in 2021. The news of the ETF filing caused a brief surge in the price of ETH, with an increase of approximately 3% before returning to its previous range.
Overall, the cryptocurrency industry is eagerly awaiting regulatory approval of spot ETFs, which would provide investors with an easier and more regulated way to gain exposure to digital assets. These investment vehicles could potentially attract significant capital into the market and drive further mainstream adoption of cryptocurrencies like Bitcoin and Ethereum. However, until the SEC makes its decision on these ETFs, market participants will continue to monitor the regulatory landscape for any updates or changes that may impact the industry.
Source link