Ark, 21Shares Apply for Ethereum Spot ETF
Date: 2023-09-07 Author: Karina Ziganova Categories: BLOCKCHAIN
In October, Ark Investment Management and 21Shares filed for an Ethereum spot exchange-traded fund (ETF) offering in October, according to Bloomberg, Sept. 6.
Both firms filed with the Securities and Exchange Commission (SEC) this afternoon at the time of this report.
If approved, the fund will trade under the ticker ARKE. The fund will provide an opportunity for ordinary investors to invest in a fund that is physically backed by Ethereum (ETH), without being associated with the purchase or storage of the cryptocurrency itself. Ark's spot ETF-Ethereum will be the first of its kind, unless it fails.
A declaration of the ambitious nature of the plan in light of the virtual absence of a comparable Bitcoin fund. This was said by Kathy Wood, CEO and CIO of Ark Invest. Her words on Bloomberg:
“There was a lot of controversy about the Bitcoin Spot ETF, which I think a lot of people thought. That it's too far But we don't. It is very nice to be the first.
Ophelia Snyder, co-founder and president of 21Shares, suggested that Grayscale's victory over the SEC, which resulted in grayceal's approval of the GBTC ETF conversion, affected the filing deadline. Snyder said that the fundamentals of the Ethereum market are also an incentive to use it.
BTC attempts are followed by an ETH application.
Ethereum is Ark's latest development and is a bitcoin spot ETF. Ark and other asset managers filed similar applications in June. They want a Bitcoin spot ETF offer after a similar offer from BlackRock.
These applications deserve promising status because BlackRock is a financial giant and as a result of each application having an oversight agreement on Coinbase sharing.
In August, Wood gave her perspective on the situation. She correctly guessed that the SEC would delay deciding on the latest bitcoin spot ETF filings; however, she said that she would eventually approve a number of applications for spot bitcoin.
Despite everyone's optimism, neither spot bitcoin nor ethereum ETFs are allowed at the moment. On the one hand, Ark's own bitcoin ETF filings are on the list of those previously rejected by the SEC. The firm had its last failure in January 2023.
Ark also has other ETF applications, including one fund tied to bitcoin futures, as well as ether. At the end of last year, the US Securities and Exchange Commission (SEC) approved bitcoin futures ETFs.
