ARK Invest and 21Shares Seek Approval for Ether ETF
Two prominent asset managers, ARK Invest and 21Shares, have taken a significant step towards launching an exchange-traded fund (ETF) that directly holds Ether (ETH). They have submitted an application to the US Securities and Exchange Commission (SEC) for their proposed Ark 21Shares Ethereum ETF.
A Groundbreaking ETF for Ethereum
If approved, this ETF would be the first of its kind in the US, offering direct exposure to ETH, the second most popular cryptocurrency. The application reveals that the fund plans to store its ETH assets with Coinbase Custody Trust Company, with a majority of holdings kept in cold storage for enhanced security.
Following the announcement, the price of Ether experienced a significant surge, although it later settled around $1,630, similar to its earlier trading level. This development comes shortly after Grayscale’s recent legal victory against the SEC regarding a Bitcoin ETF.
SEC Postpones Bitcoin ETF Decisions
Grayscale aims to accelerate the approval process by meeting with the SEC promptly. In response, the SEC has postponed its decision on various spot Bitcoin ETFs, extending the review period until October 17. ARK Invest, led by Cathie Wood and known for its positive outlook on cryptocurrencies, particularly Bitcoin, is likely to generate significant attention with its Ether ETF application.
Uncertain SEC Stance and Potential Legal Battle
Despite the attention garnered by the Ether ETF application, the SEC’s position remains uncertain. It is unclear whether the regulator will oppose the ETF or if the situation will escalate into a court battle, similar to the Bitcoin ETF case.
Hot Take:
The submission of an application for an Ether ETF marks a significant milestone in the crypto industry. If approved, it could pave the way for increased mainstream adoption of cryptocurrencies. The SEC’s decision and potential legal implications will undoubtedly shape the future of digital asset investment opportunities.
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