Crypto Enthusiasts Await SEC’s Verdict on ARK’s Ethereum ETF.
SEC delays decision on ARK’s Bitcoin ETF, but Ethereum ETF proposal steals the spotlight. Growing demand for diversified crypto investments.
In a bid to diversify its offerings amid the United States Securities and Exchange Commission’s (SEC) cautious approach to cryptocurrency exchange-traded funds (ETFs), ARK Investment Management, in collaboration with 21 Shares, has taken a bold step by proposing an investment vehicle with exposure to Ethereum (ETH).
As the SEC extends its deliberation on ARK’s Bitcoin ETF, the investment firm has set its sights on Ethereum. In a filing submitted on September 6th, ARK Invest and 21 Shares formally requested the SEC’s approval to list shares of a spot Ethereum ETF on the Cboe BZX Exchange. This groundbreaking investment vehicle, aptly named the “ARK 21 Shares Ethereum ETF,” is poised to make waves in the cryptocurrency market. Notably, Coinbase, a well-established crypto exchange platform, will serve as the custodian for this ETF, further cementing its credibility.
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
Unlike its Bitcoin counterparts, the ARK 21 Shares Ethereum ETF will gauge the performance of Ether using the Chicago Mercantile Exchange CF Ether-Dollar Reference Rate. This innovative approach is expected to provide investors with a more comprehensive view of Ethereum’s value, taking into account the broader financial ecosystem.
ARK’s proposal joins a growing list of spot cryptocurrency ETFs awaiting the SEC’s review. Following the recent success of asset manager Grayscale, which won an appeal compelling the SEC to reconsider the conversion of its Bitcoin Trust into a Bitcoin ETF, numerous firms are optimistic about securing regulatory approval.
However, the SEC remains cautious and recently announced a delay in its decision regarding spot Bitcoin ETF applications from seven different firms, including the world’s largest asset manager, BlackRock. It’s worth noting that ARK Invest and 21 Shares’ spot Bitcoin ETF was not included in this delay, with its next deadline for approval, denial, or further delay set for November 11th.
As the cryptocurrency market continues to evolve, these developments signal a growing demand for diversified investment options and greater regulatory clarity, which could potentially pave the way for wider cryptocurrency adoption among traditional investors.