HomeNewsCrypto's Next Frontier: ARK Invest's Ethereum ETF Signals Big Changes

Crypto’s Next Frontier: ARK Invest’s Ethereum ETF Signals Big Changes

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  • ARK Invest and 21Shares have submitted the first application for a spot Ether ETF in the United States, aiming to offer direct investment in Ethereum.
  • This move comes as the SEC shows signs of softening its stance on cryptocurrency ETFs, potentially heralding a pivotal moment for the crypto investment landscape.

The Vanguard of Crypto Investment: Spot Ether ETF

In a momentous collaboration, ARK Invest and 21Shares have filed for the first-ever spot Ether ETF in the United States. This groundbreaking initiative seeks to augment their existing cryptocurrency portfolios and sets a new paradigm in the evolving cryptocurrency investment landscape. If sanctioned by regulators, the proposed ETF is slated to be listed on the Cboe BZX Exchange.

Spot Ether vs. Ether Futures

Until now, the market has witnessed filings for Ether futures ETFs, which are derivative products that provide exposure to Ethereum without holding the asset directly. However, ARK Invest and 21Shares are looking to pivot from the abstract to the tangible by holding Ether directly in the ETF. This direct holding model is particularly significant given Ethereum’s market capitalization of roughly $195 billion, which stands second only to Bitcoin’s behemoth $500 billion cap.

The specifics such as ticker symbol and fee structure for this audacious venture are yet to be disclosed.

A Global Phenomenon in Crypto Acceptance

While this news is undoubtedly making waves in the U.S., it’s crucial to acknowledge its place in a broader, global tapestry of crypto acceptance. Regulatory bodies in countries like Canada have already embraced similar investment vehicles, having launched a spot Ether ETF as early as April 2021.

Past and Future Endeavors

Cathie Wood’s ARK Invest initially joined forces with Swiss ETP issuer 21Shares in 2021 to launch a spot Bitcoin ETF. Although these efforts did not culminate in approval, both organizations have submitted new applications for a spot Bitcoin ETF this year. They also plan to unveil two funds centered around Ether futures contracts, while already serving as sub-advisers on three crypto funds that focus on Bitcoin futures contracts.

Regulatory Winds Are Changing

The SEC appears to be in a state of flux, especially in light of its recent court loss to Grayscale Investments, which has been deemed “arbitrary and capricious” by the DC Circuit Court of Appeals. This development has amplified industry confidence in the likelihood of the SEC approving a U.S. spot Bitcoin ETF, estimated now at a compelling 75%.

The broader implication of this groundbreaking move by ARK Invest and 21Shares extends far beyond these companies; it could signify the dawn of a new era in crypto investment, one that brings cryptocurrencies into the investment mainstream.

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Marcel Knobloch
Marcel Knobloch
Marcel is the managing partner of ETHNews and is also known as Collin Brown in the crypto community. He is a seasoned Bitcoin investor who entered the crypto scene during its early stages and has since become a veteran trader in both the cryptocurrency and forex markets. His journey began in 2012 when he made his first investment in Bitcoin, marking the beginning of his deep-rooted passion for blockchain technology and digital assets. With a mission to demystify the intricacies of blockchain for the masses, Marcel endeavors to bring the world of cryptocurrencies closer to everyone. His insightful reports are dedicated to shedding light on the latest developments and innovations within the realms of Bitcoin, Ethereum, Ripple (XRP), IOTA, VeChain, Cardano, Hedera, and numerous other cryptocurrencies. Marcel's in-depth analysis and commitment to providing accessible information make him a trusted source for both novice and experienced crypto enthusiasts. Marcel's academic background includes a Master's Degree in Business Education, which has equipped him with a solid foundation in financial markets and investment strategies. Over the past decade, he has amassed invaluable experience working with various startups across the globe, enriching his knowledge and understanding of the ever-evolving cryptocurrency landscape. With his wealth of expertise and dedication to empowering others with crypto knowledge, Marcel continues to be a driving force in the cryptocurrency community. Business Email: marcel.knobloch@hotmail.com Phone: +49 160 92211628