ARK Invest and 21Shares Collaborate to File for Spot Ether ETF
If you’re a crypto enthusiast, you’ll be interested to know that ARK Invest and 21Shares have teamed up to become the first to file for a spot ether ETF in the United States. This move is part of their plan to expand their portfolio of crypto products, following the SEC’s considerations for Bitcoin ETFs and Ether futures. If approved, this ETF will trade on the Cboe BZX Exchange, setting a new precedent in the crypto market.
Ether Futures vs. Spot Ether
Unlike the Ether futures ETFs filed for in July and August, ARK Invest and 21Shares’ endeavor involves holding Ether directly. Ether currently has a market capitalization of around $195 billion, second only to Bitcoin’s $500 billion cap.
The details of the proposed ETF, such as the ticker and fee structure, were not disclosed in the filing.
In addition, countries like Canada have been showing increasing support for cryptocurrencies. Canada approved a spot Ether ETF in April 2021, shortly after approving spot Bitcoin ETFs. This shows that the ARK 21Shares Ethereum ETF filing is not limited to the U.S. but aligns with a global trend towards crypto acceptance.
Forward-Looking Strategies
ARK Invest, led by asset manager Cathie Wood, and 21Shares initially partnered to launch a spot Bitcoin ETF in 2021. Although their efforts were rejected by the SEC, they re-filed for a spot Bitcoin product in April. They have also shared plans for two funds involving Ether futures contracts and are listed as sub-advisers on three proposed crypto funds involving Bitcoin futures contracts.
The recent filing for a spot Ether ETF by ARK Invest and 21Shares marks a significant moment for cryptocurrency investment options. With the SEC’s stance appearing to soften, the timing couldn’t be better for introducing groundbreaking products like these.
The SEC’s Shifting Stance
This development comes at a time when the SEC seems to be facing setbacks, such as losing a court case to Grayscale Investments. The court ruled that the SEC’s approach of allowing Bitcoin futures but not converting Grayscale’s Bitcoin Trust to an ETF was “arbitrary and capricious.” As a result, industry analysts have increased the likelihood of a U.S. spot Bitcoin ETF approval by the end of this year to 75%.
Furthermore, other jurisdictions like Canada have already approved similar crypto products, further suggesting a warming up to such assets outside of the U.S.
Hot Take
The collaboration between ARK Invest and 21Shares to file for a spot Ether ETF is a significant step in the evolution of crypto investment options. With regulatory bodies like the SEC showing signs of flexibility and other countries already embracing crypto assets, it is clear that the future of cryptocurrencies is gaining momentum.
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