ARK Invest Applies For First-Ever Spot Ethereum ETF
Crypto asset manager ARK Invest has submitted an application with the SEC to list the first-ever spot Ether ETF for the U.S. market. The Trust has appointed Coinbase as custodian for its assets.
Cathie Wood’s ARK Invest, in partnership with Switzerland-based asset management firm 21Shares, has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) for an exchange-traded fund (ETF) based on the Ether (ETH) cryptocurrency that powers the Ethereum blockchain.
The proposed fund known as ARK 21Shares Ethereum ETF is the first attempt by a major financial firm to list an exchange-traded product (ETP) in the U.S. market that directly invests in the world’s second-largest cryptocurrency.
ARK Invest Attempts Listing For First Ever Spot Ethereum ETF For The U.S. Markets
With its spot Ethereum ETF, ARK Invest aims to offer traditional retail investors the chance to get direct access to Ether (ETH) without having to buy, hold, or trade the assets themselves.
According to the filing made on September 6, the fund is to be listed on the Chicago Board Options Exchange (Cboe BZX Exchange) and will utilize the Chicago Mercantile Exchange’s CME CF Ether-Dollar Reference Rate-New York Variant to conduct its operations.
ARK Investment Management will act as the Trust’s sub-advisor and assist in promoting its shares. Meanwhile, 21Shares has been assigned as the ETF’s sponsor, Coinbase Custody Trust Company - a subsidiary of crypto exchange Coinbase - will custody the Trust’s assets, and the Delaware Trust Company will be its trustee.
Both asset managers released a joint statement after the filing was made, stating that the ARK 21Shares Ethereum ETF would be a “cost-effective” and “convenient” way to invest in Ether without having to purchase, hold, and trade the asset directly. The companies also clarified that the Trust will not invest in any derivatives.
Bitcoin (BTC) and Ethereum (ETH) rallied soon after the announcement was made by ARK Invest, but have since returned to their prices observed before the filing.
Crypto Market Eagerly Anticipates SEC’s Approval For First Bitcoin-Based ETF
The filing follows the slew of applications made by various asset managers to the SEC for the much-coveted spot Bitcoin ETF, which includes another joint attempt by ARK and 21Shares and proposals from Wall Street giants BlackRock and Fidelity. The financial regulator was supposed to approve four proposals last week but has delayed its decision indefinitely.
This was after a federal court ruled in favor of crypto asset manager Grayscale in its lawsuit against the SEC for declining its spot Bitcoin ETF application without any valid reason last year. The court ordered the securities watchdog to revisit and re-review Grayscale’s Bitcoin ETF proposal.
The ruling resulted in BTC rallying briefly to $28,000 as the market anticipated the SEC to approve the first-ever listing of a Bitcoin-based ETP in the U.S. market. The regulator has since said it will appeal the court’s decision, leading to it delaying all spot Bitcoin ETF applications due last week.
SEC To Make A Decision On First-Ever Ethereum Exchange-Traded Fund In October
The securities regulator is poised to approve the first Ether-based futures ETFs for trade listing in the United States. Fund managers Volatility Shares, Bitwise, VanEck, Roundhill, Pro Shares, and Grayscale have filed applications with the SEC for ETFs that will invest in derivatives contracts tied to Ether instead of holding the asset itself.
The SEC is expected to decide on the Ether Futures ETF contracts by the end of October.
At the time of writing, ETH was trading at $1,628.99 - up 0.3% from the previous day.