- 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.
🚀 Breaking News! 📢 ARK Invest and 21Shares are set to revolutionize crypto investing with the FIRST US spot #Ether ETF! 🌟 While the SEC mulls over Bitcoin ETFs, we're paving the way for #Ethereum enthusiasts to dive in. 🙌💎 #ETHETF pic.twitter.com/CFFkHB1Ar5
— Collin Brown (@CollinBrownXRP) September 7, 2023
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.