Two prominent asset managers, ARK Invest and 21Shares, have taken a whole lot of step towards launching an exchange-traded fund (ETF) that directly holds Ether (ETH). They have submitted an app to the United States Securities and Exchange Commission (SEC) for their proposed Ark 21Shares Ethereum (ETH) ETF.
A Groundbreaking ETF for Ethereum
If approved, this ETF would be the first of its kind in the United States, offering direct exposure to Ethereum (ETH), the Second most trending digital currency. The app outlines that the fund intends to store its Ethereum (ETH) assets with Coinbase Custody Trust Company, with a bulk of holdings kept in cold storage for enhanced security.
After the notice, the price of Ether experienced a whole lot of 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 (BTC) ETF.
SEC Postpones Bitcoin (BTC) ETF Decisions
Grayscale intends to accelerate the approval process by meeting with the SEC promptly. As a result, the SEC has postponed its decision on numerous spot Bitcoin (BTC) ETFs, extending the review period until October 17. ARK Invest, led by Cathie Wood and known for its positive outlook on digital currencies, particularly Bitcoin, is very likely generate whole lot of attention with its Ether ETF application.
Uncertain SEC Stance and Probable Legal Battle
Regardless of the attention garnered by the Ether ETF application, the SEC’s position remains uncertain. It is not clear whether the regulator will oppose the ETF or if the situation will escalate into a court battle, similar to the Bitcoin (BTC) ETF case.
The submission of an app for an Ether ETF marks a whole lot of milestone in the cryptocurrency industry. If approved, it might pave the way for increased mainstream adoption of digital currencies. The SEC’s decision and probable legal implications will undoubtedly shape future of the digital asset investment opportunities.
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