Ark Investment Management and 21Shares are the latest companies to file for a spot Ethereum exchange-traded fund (ETF). With the growing popularity of cryptocurrencies and the increasing interest in Ethereum, these filings seek to provide investors with an easy and regulated way to gain exposure to the digital asset. The move by these well-known financial firms demonstrates a growing acceptance and recognition of the potential of Ethereum, and their applications for an ETF highlight the demand for a diversified investment vehicle in the crypto market. As the ETF space continues to expand, the introduction of an Ethereum ETF would provide investors with a convenient and secure way to participate in the world of cryptocurrencies while mitigating some of the risks associated with direct ownership. Stay tuned for further developments in the approval process of these applications, and the potential launch of an Ethereum ETF.
Title 1: Ark Investment Management and 21Shares File for Spot Ethereum ETF
Ark Investment Management and 21Shares have recently submitted an application to the Securities and Exchange Commission (SEC) for the approval of a spot Ethereum exchange-traded fund (ETF) (Bloomberg). The application was filed on September 6, aiming to provide traditional investors with an opportunity to invest in Ethereum without directly purchasing or holding the cryptocurrency. If successful, Ark’s spot Ethereum ETF would be the first of its kind.
The potential ETF would trade under the ticker ARKE and offer investors exposure to Ethereum’s price movements. This initiative is especially significant given the absence of a Bitcoin spot ETF. Cathie Wood, CEO and CIO of Ark Invest, stated that while a Bitcoin spot ETF has faced regulatory controversy, their Ethereum ETF application is prepared to push boundaries and set a precedent (Bloomberg).
Ophelia Snyder, co-founder and president of 21Shares, revealed that their decision to apply for a spot Ethereum ETF was influenced by Grayscale’s recent victory against the SEC. Following Grayscale’s success in securing approval for its GBTC ETF conversion, the market fundamentals of Ethereum further supported 21Shares’ application (CryptoSlate).
Title 2: Ark Investment Management Expands ETF Ambitions with Bitcoin Application
Ark Investment Management is not only pursuing a spot Ethereum ETF but also a Bitcoin spot ETF. In response to BlackRock’s application for a Bitcoin spot ETF in June, Ark and multiple other asset managers submitted similar applications (CryptoSlate).
The involvement of BlackRock, a prominent financial giant, adds weight to these applications, along with the inclusion of a Coinbase surveillance-sharing agreement. Cathie Wood, in her previous analysis of the situation, correctly predicted that the SEC would delay its decision on the spot Bitcoin ETF applications. However, she remains optimistic that the regulator will eventually approve multiple applications due to their resemblance (CryptoSlate).
Despite previous rejections by the SEC, including the most recent one in January 2023, Ark remains committed to its ETF endeavors. In addition to the spot ETF applications, the company has other ETFs in progress, including those tied to Bitcoin and Ether futures. It’s worth noting that the SEC has already approved Bitcoin futures ETFs (CryptoSlate).
In summary, Ark Investment Management and 21Shares have submitted an application for a spot Ethereum ETF. If approved, it would provide traditional investors with the opportunity to invest in Ethereum without directly holding the cryptocurrency. Furthermore, Ark’s Ethereum ETF could pave the way for future digital asset ETFs. Additionally, Ark is concurrently pursuing a Bitcoin spot ETF, joining a wave of asset managers in similar pursuits. Despite previous rejections, Cathie Wood remains confident in the eventual approval of Bitcoin spot ETFs. The SEC’s approval of Bitcoin futures ETFs demonstrates a potential opening for spot ETFs in the future.