Cathie Wood’s Ark Invest Aims to Make History with America’s First Spot Ethereum ETF
Cathie Wood’s Ark Invest has set its sights on establishing America’s first spot Ethereum ETF, marking a significant step in the mainstream adoption of cryptocurrencies. The filing with the Securities and Exchange Commission (SEC) on Wednesday has sent ripples through the financial world, drawing parallels to recent developments in the Bitcoin ETF arena.
ARK 21Shares Ethereum ETF
Ark Invest’s application, aptly named the ARK 21Shares Ethereum ETF, bears a striking resemblance to the numerous applications for spot Bitcoin ETFs that have recently been delayed by the SEC. The regulatory body recently cited the need for more time to evaluate these proposals, a decision that came on the heels of Grayscale’s courtroom victory. Notably, Ark Invest’s Ethereum ETF application names Coinbase as the custodian, underscoring the critical role of the prominent crypto exchange in safeguarding the Ethereum assets that will back the shares of Ark Invest’s ETF. This innovative investment vehicle is slated to be traded on the Cboe BZX Exchange, a prominent player in the world of financial markets.
A Shift Towards Ethereum
While the SEC has received multiple applications for futures-based Ethereum ETFs, Ark Invest’s move represents a significant step beyond this. Futures-based Bitcoin ETFs have been trading in the United States since ProShares launched its product on the New York Stock Exchange in 2021. It’s worth noting that, two years later, Ethereum seems poised to make its long-awaited Wall Street debut, with the anticipation that the SEC could potentially greenlight a wave of Ethereum futures ETFs. These ETFs would track the price of derivatives traded on the Chicago Mercantile Exchange (CME), and the market is abuzz with speculation that approvals could come as early as October.
A History of Regulatory Scrutiny
Ark Invest’s recent application for a spot Ethereum ETF comes on the heels of its drawn-out battle with the SEC over a spot Bitcoin ETF. The firm initially filed for a spot Bitcoin ETF back in June 2021, and this journey has undoubtedly been fraught with regulatory hurdles. In the latest application, Ark Invest seeks to address the SEC’s concerns by highlighting the Cboe BZX Exchange’s ability to obtain comprehensive information about activities in the CME’s Ethereum futures market. This move is strategic, as it aims to allay any apprehensions that the SEC may have had in the past.
The Road Ahead
As the world of cryptocurrencies continues to evolve, Ark Invest’s bold move towards an Ethereum ETF marks a significant milestone. The financial industry and crypto enthusiasts alike are eagerly watching the SEC’s response, as the approval of America’s first spot Ethereum ETF could open the floodgates for similar investment products. If the trend continues, it won’t be long before Ethereum joins Bitcoin on the list of cryptocurrencies accessible to mainstream investors via exchange-traded funds.
Read more:
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