ARK Invest Seeks Approval for Ethereumย (ETH) ETF from SEC
ARK Invest recently submitted an official request to the SEC for the issuance of a spot Ethereumย (ETH) ETF. If this request is approved, it would mark the first ETF to be directly collateralized in Ethereumย (ETH) and authorized by the Unitedย States equity market overseer.
Exploring ETFs on Ethereum
Althoughย while ETFs on Ethereumย (ETH) already exist in Europe and Canada, they are collateralized directly in Ethereumย (ETH). In the Unitedย States, only ETFs based on Ethereumย (ETH) price futures contracts have received approval. The SEC has been hesitant to approve ETFs directly based on digitalย currencies, opting instead for futures contract-based ETFs.
Followingย the recent ruling against the SEC in the Grayscale case, numerous believe that the agency no longer has theย probable to reject similar ETF applications. Notably, BlackRock, a major player in the financial industry, is between the applicants, boasting a high approval rate for its ETF requests.
The Advantages of Cryptocurrency ETFs
Cryptocurrency ETFs that replicate digitalย currency price movements offer plentyย of advantages. Firstly, investors doย not need to personally custody the digitalย currencies as the fund manager takes on this responsibility. Inย addition, these fully regulated instruments trade on traditional exchanges, making them accessible to institutional clients and those who prefer using regulated financial products.
Nonetheless, drawbacks include the reliance on third-party custody, the need to use the traditional financial system, and the inability to trade peer-to-peer.
About ARK Invest and Their Ethereumย (ETH) ETF
ARK Investment Management, established in 2014 by Cathie Wood, is a renowned Unitedย States investment management company that manages numerous actively managed ETFs. They became one of the top 10 ETF issuers universally and are now seeking approval for their spot Ethereumย (ETH) ETF, wasย known Ark 21Shares Ethereumย (ETH) ETF, in partnership with 21Shares, a leading cryptocurrency ETF issuer based in Switzerland.
The Ethereumย (ETH) holdings will be entrusted to Coinbase Custody Trust Company.
Hot Take
The prospect of an Ethereumย (ETH) ETF represents a wholeย lotย of milestone for the cryptocurrency market. If approved, itย might open doors for increased institutional participation and further legitimize digital assets within traditional financial systems.
Leo Nomist emerges as a maestro harmonizing the roles of crypto analyst, tenacious researcher, and editorial virtuoso, creating an unparalleled symphony of insight. Amidst the intricate world of digital currencies, Leo’s perspectives resonate like finely tuned chords, capturing the attention of curious minds from diverse horizons. His talent for deciphering complex threads of crypto intricacies blends seamlessly with his editorial finesse, translating intricacy into a captivating composition of understanding.
