Cathie Wood’s Ark Invest and 21Shares have joined the race to launch a spot Ethereum Exchange-Traded Fund (ETF) in the United States. They have submitted an application to the Securities and Exchange Commission (SEC) to launch an ETF for Ethereum. This move puts pressure on the SEC, which recently lost a legal battle over the approval of Bitcoin futures ETFs. The Chicago Board Options Exchange’s BZX exchange has also filed documents to list two spot Ether ETFs, giving the SEC up to 240 days to make a decision.
Spot Bitcoin ETF Approval is ‘Inevitable’
The recent legal victory for Grayscale has increased the likelihood of approval for a spot Bitcoin ETF. Former SEC chair Jay Clayton believes that approval is inevitable. Despite this, the SEC has once again delayed a decision on seven spot Bitcoin ETF applications, causing a decline in crypto assets. The applications by Ark 21Shares and VanEck are the first attempts to list a spot Ether ETF. Coinbase Custody will serve as the custodian for both spot Ether ETFs.
Hot Take
The approval of spot cryptocurrency ETFs backed by reputable firms like Ark Invest, BlackRock, or Fidelity would provide a significant boost to the crypto ecosystem and increase mainstream acceptance. Experts predict that the approval of spot Bitcoin ETFs could result in a $30 billion influx of new demand for Bitcoin. It is advised that investors aggressively accumulate Bitcoin at its current prices.
Insa’s extensive background in the financial realm encompasses roles as a writer, trader, and personal finance coach. Her proficiency spans a wide spectrum, ranging from commodities and indices to forex and cryptocurrencies. Insa’s specialization lies in furnishing strategic investment advice tailored to the fintech investment niche.