In response to regulatory delays from the SEC, ARK Invest and 21Shares have applied for a spot Ether Exchange-Traded Fund (ETF). Currently, these two entities are undergoing SEC review for their spot Bitcoin ETF. Additionally, they have recently put forth proposals for the listing of two Ether futures ETFs.
The United States Securities and Exchange Commission (SEC) has decided to delay a ruling on ARK Investment Management’s spot Bitcoin ETF. In response, the firm has introduced an investment vehicle providing exposure to Ether.
Notably, on September 6th, ARK Invest and 21Shares filed for SEC approval for a spot Ether ETF on Cboe BZX Exchange. This investment product, named the ARK 21Shares Ethereum ETF, will have Coinbase, a cryptocurrency exchange, acting as its custodian.
Additionally, the ETF will track Ether’s performance based on the Chicago Mercantile Exchange CF Ether-Dollar Reference Rate. Interestingly, the proposal submitted by ARK Invest and 21Shares is just one among several spot crypto ETFs currently under SEC scrutiny.
Grayscale’s successful appeal, which compelled the SEC to reconsider the conversion of its Bitcoin Trust into a Bitcoin ETF, has sparked cautious optimism among many firms. They are hopeful about the prospects of regulatory approval.
ARK Invest and 21Shares: Recent Developments in Crypto ETFs and Market Responses
Additionally, on August 31st, two days after the Grayscale ETF decision, the SEC announced a delay in its verdict. This concerns the approval or denial of spot Bitcoin ETF applications from seven firms. Among these is BlackRock, which is the world’s largest asset manager.
Notably, the spot Bitcoin ETF proposed by ARK Invest and 21Shares was not among those delayed. Its next decision deadline is set for November 11th.
The current version of ARK Invest’s and 21Shares’ Bitcoin investment vehicle marks their third attempt at launching a spot Bitcoin ETF since 2021. Additionally, the companies introduced proposals for two ETH futures ETFs in August. It’s worth noting that ETFs linked to cryptocurrency futures have received more favorable responses from the SEC. Several of them obtained approvals in 2021.
The announcement of the ETF filing led to a brief surge in the price of Ether. Data from Cointelegraph Markets Pro indicates that the value of ETH increased by around 3%. It climbed from $1,623 to $1,669 before stabilizing within the $1,620 to $1,640 range.
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