ARK Invest and 21Shares have submitted a request for regulatory authorization regarding an ETF (Exchange-Traded Fund) designed to directly hold Ether (ETH). This petition was recently disclosed in a submission to the U.S. Securities and Exchange Commission (SEC). The Ark 21Shares Ethereum ETF represents the inaugural endeavor to introduce such a fund in the United States, one that directly invests in ETH, the second-largest cryptocurrency by market capitalization. The custody of assets for this ETF would be entrusted to the Coinbase Custody Trust Company. Upon the release of this news, Ether and Bitcoin (BTC) initially experienced price surges, but these gains were short-lived, with both cryptocurrencies subsequently returning to their pre-filing levels. This submission follows a series of applications for a highly sought-after Bitcoin ETF, including a collaborative effort by Ark and 21Shares. Last week, the SEC postponed its decision on all these applications. Furthermore, this development precedes the anticipated SEC approval of the initial futures-based Ether ETF. The impending decision by the regulatory agency on this matter is projected to be reached on or before mid-October. Going forward, the industry is likely to advocate for more crypto ETFs, drawing inspiration from the recent legal victory secured by trust issuer Grayscale against the SEC. In any case, a spot Ether ETF is expected to be a prominent contender, primarily due to its structural similarities to BTC, involving actively traded futures and spot markets on the Chicago Mercantile Exchange (CME), a pivotal regulated platform for institutional investors.
