Two prominent asset managers, ARK Invest and 21Shares, have taken a wholeย lotย of step towards launching an exchange-traded fund (ETF) that directly holds Ether (ETH). They have submitted an appย to the Unitedย States Securities and Exchange Commission (SEC) for their proposed Ark 21Shares Ethereumย (ETH) ETF.
A Groundbreaking ETF for Ethereum
If approved, this ETF would be the first of its kind in the Unitedย States, offering direct exposure to Ethereumย (ETH), the Second most trending digitalย currency. The appย outlines that the fund intendsย to store its Ethereumย (ETH) assets with Coinbase Custody Trust Company, with a bulkย of holdings kept in cold storage for enhanced security.
Afterย theย notice, the price of Ether experienced a wholeย lotย of surge, although it later settled around $1,630, similar to its earlier trading level. This development comes shortly after Grayscaleโs recent legal victory against the SEC regarding a Bitcoinย (BTC) ETF.
SEC Postpones Bitcoinย (BTC) ETF Decisions
Grayscale intendsย to accelerate the approval process by meeting with the SEC promptly. Asย aย result, the SEC has postponed its decision on numerous spot Bitcoinย (BTC) ETFs, extending the review period until October 17. ARK Invest, led by Cathie Wood and known for its positive outlook on digitalย currencies, particularly Bitcoin, isย veryย likely generate wholeย lotย of attention with its Ether ETF application.
Uncertain SEC Stance and Probable Legal Battle
Regardlessย of the attention garnered by the Ether ETF application, the SECโs position remains uncertain. It isย notย clear whether the regulator will oppose the ETF or if the situation will escalate into a court battle, similar to the Bitcoinย (BTC) ETF case.
Hot Take:
The submission of an appย for an Ether ETF marks a wholeย lotย of milestone in the cryptocurrency industry. If approved, itย might pave the way for increased mainstream adoption of digitalย currencies. The SECโs decision and probable legal implications will undoubtedly shape futureย ofย the digital asset investment opportunities.
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