ARK Invest and 21Shares Forge Path with First U.S. Spot Ether ETF
- ARK Invest and 21Shares have filed for the first-ever spot Ether ETF in the United States.
- The ETF will hold Ether directly, marking a departure from Ether futures ETFs.
In a historic collaboration, ARK Invest and 21Shares have made a significant move by filing for the very first spot Ether ETF in the United States. This groundbreaking initiative not only aims to expand their existing cryptocurrency portfolios but also marks a paradigm shift in the ever-evolving world of cryptocurrency investments. Pending regulatory approval, this innovative ETF is expected to be listed on the Cboe BZX Exchange.
In contrast to previously filed Ether futures ETFs, which offer exposure to Ethereum through derivative products, ARK Invest and 21Shares are opting for a direct approach. Their ETF will hold Ether directly, bridging the gap between the abstract and the tangible. This approach gains significance considering Ethereum’s substantial market capitalization, hovering around $195 billion, second only to Bitcoin’s colossal $500 billion market cap.
Details such as the ETF’s ticker symbol and fee structure are yet to be revealed, keeping investors and enthusiasts eagerly anticipating further information. While this groundbreaking news captures attention in the United States, it’s essential to recognize its place in the global landscape of crypto acceptance. Regulatory bodies in countries like Canada have already embraced similar investment vehicles, with a spot Ether ETF launched as early as April 2021.
ARK Invest, led by Cathie Wood, initially collaborated with Swiss ETP issuer 21Shares in 2021 to launch a spot Bitcoin ETF. Despite facing approval challenges, both organizations have submitted new applications for a spot Bitcoin ETF this year. Additionally, they plan to introduce two funds centered around Ether futures contracts, while currently serving as sub-advisers on three crypto funds focusing on Bitcoin futures contracts.
Recent developments suggest a changing regulatory landscape, with the SEC experiencing shifts in its stance. A notable example is its court loss to Grayscale Investments, deemed “arbitrary and capricious” by the DC Circuit Court of Appeals. This shift has bolstered industry confidence in the likelihood of the SEC approving a U.S. spot Bitcoin ETF, with current estimates standing at a compelling 75%.
A New Era in Crypto Investment
ARK Invest and 21Shares’ pioneering move signifies more than just a milestone for these companies; it could signify the dawn of a new era in crypto investment. This development has the potential to bring cryptocurrencies further into the investment mainstream, redefining how investors approach and engage with the digital asset space.
