In a bold and progressive move, asset management firm Ark Invest, guided by the visionary Cathie Wood, along with 21Shares, has once again created a buzz in the financial sector. They’ve taken a leap into the future by submitting an application for the pioneering spot Ethereum Exchange Traded Fund (ETF) in the United States.
As per documentation lodged with the US Securities and Exchange Commission (SEC), this trailblazing ETF, called the “Ark 21Shares Ethereum ETF,” was officially filed on Wednesday.
BOOM: ARK just filed for a Spot Ether ETF, the first one.. prob more coming imminent pic.twitter.com/PjK5aSNPlS
— Eric Balchunas (@EricBalchunas) September 6, 2023
In a notable mention, Coinbase (NASDAQ:COIN), a leading player in the crypto sphere, has been appointed as its trusted custodian- responsible for measuring the performance of Ether based on the Chicago Mercantile Exchange CF Ether-Dollar Reference Rate. This marks a significant stride in bringing cryptocurrency further into mainstream finance.
First Spot ETH ETF In The US
The two asset management firms – which currently have a spot Bitcoin ETF being reviewed by the SEC – are now in anticipation mode, awaiting the green light from the SEC for an ETF that would hold Ether (ETH), the world’s second-largest cryptocurrency by market cap, directly.
The recent application by ARK Invest and 21Shares for a spot Ethereum ETF has joined the queue of numerous spot crypto ETFs that are patiently waiting for a nod from the SEC.
This comes in the wake of Grayscale’s recent court victory.
In a ruling on Aug. 29, judges at the DC Circuit Court of Appeals deemed the SEC’s decision to approve Bitcoin futures funds while rejecting Grayscale’s proposed conversion of its Bitcoin Trust (GBTC) as “arbitrary and capricious”. This determination underscores the notion that the SEC’s actions lacked consistency and logic, leaving room for further examination and potential reconsideration of their stance.
In her decision, Judge Neomi Rao pointed out that the US securities regulator had not provided a sufficient explanation for its inconsistent treatment of similar products. As a result, the SEC’s order was invalidated.
Grayscale’s legal win has kindled a glimmer of hope across various firms — including BlackRock (NYSE:BLK) — the world’s largest asset manager, Fidelity and others — who are now optimistic about securing regulatory approval for their respective ETFs.
The landscape of cryptocurrency is potentially on the brink of a significant transformation as these companies eagerly anticipate a positive verdict from the SEC.
This development, if actualized, could signal a watershed moment for the crypto market, bringing about increased liquidity and accessibility, while simultaneously providing a potential boost to the mainstream acceptance of cryptocurrencies.
ETH Price Action
In the wake of the ETF filing news, Ether experienced a fleeting price surge. As per the data collated from CoinMarketCap, the price of ETH witnessed an approximate hike of 6%, jumping from $1,644 to a peak of $1,736. However, the rally was short-lived as the price is currently trading slightly below the $1,630 level.
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