Ark Invest and 21Shares Seek Approval for First Ethereum ETF in the US
You, as a crypto reader, may be interested to know that Cathie Wood’s Ark Invest and asset manager 21Shares have made a significant move in the ETF space by applying for the first Ethereum Exchange Traded Fund (ETF) in the US. This filing was made with the US Securities and Exchange Commission (SEC) and named Coinbase as its custodian.
What to Expect from the First Spot Ethereum ETF in the US
Imagine having an ETF that directly holds ether (ETH), the second-largest cryptocurrency by market capitalization. That’s what Ark Invest and 21Shares are awaiting approval for from the SEC. It’s worth noting that the SEC has recently delayed the approval of spot Bitcoin ETFs and is taking more time to decide on ETF filings. However, Grayscale’s court victory against the SEC may present a positive outlook for the approval of spot ETFs.
Ark Invest’s Application and the Role of Coinbase
In its filing, Ark Invest has named Coinbase Custody Trust Company as its custodian. This means that if the ETF is approved, Coinbase will be responsible for holding Ethereum to back the shares of Ark 21Shares Ethereum ETF. Keep an eye on the Cboe BZX Exchange, as that’s where the ETF would trade if approved.
The Future of Ethereum ETFs
The SEC has received filings for Ethereum futures ETFs, but no approvals have been granted yet. However, Bloomberg’s senior ETF analyst, Eric Balchunas, believes that the recent lack of withdrawals from these filings is a positive sign. He predicts that Ethereum futures ETFs may hit the market around mid-October.
Ark Invest and 21Shares Collaborate for Futures-Based ETH ETF
Last week, it was revealed that Ark Invest and 21Shares have joined forces to apply for a futures-based Ethereum ETF. The proposed ETFs include the ARK 21Shares Active Ethereum Futures ETF (ARKZ) and the Ark 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY). This move aligns with the availability of futures-based Bitcoin ETFs that have been trading in the US since 2021.
Hot Take
The application for the first Ethereum ETF in the US marks a significant step in the mainstream adoption of cryptocurrencies. If approved, it would provide investors with a convenient way to gain exposure to Ethereum’s market performance. The future of ETFs in the crypto space looks promising, and it will be interesting to see how regulators navigate the evolving landscape.
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