Cathy Wood’s ARK Invest has filed for its first spot Ethereum ETF. Ark 21Shares Ethereum ETF is the first attempt to list such a fund in the US that invests directly in the leading altcoin ETH.
ARK Invest took the first step for spot ETF with Ethereum!
Asset managers ARK Invest and 21Shares have filed for regulatory approval for an exchange-traded fund (ETF) that will directly hold Ethereum (ETH), according to a filing with the U.S. Securities and Exchange Commission (SEC) on Wednesday. Ark 21Shares Ethereum ETF marks the first attempt to list such a fund in the US that invests directly in the leading altcoin ETH. The fund will custody assets with Coinbase Custody Trust Company.
The news initially sent the price of Ethereum and Bitcoin higher. However, the rally was short-lived and did not last long. The leading crypto and leading altcoin have returned to prices seen before the filing. The filing follows a series of filings for a much-loved spot Bitcoin ETF, including a joint venture by Ark and 21Shares. As you follow on Kriptokoin.com, the SEC postponed its decision on all these applications last week. The filing also comes ahead of what is expected to be SEC approval of the first futures Ethereum ETF. Expectations are that the SEC will make a decision in mid-October or earlier.
Bernstein: $676,000,000,000 in multi-altcoin ETFs coming
If the spot Bitcoin (BTC) ETF is approved, multiple altcoin exchange-traded funds (ETFs) are likely to come to life, says a senior analyst at global asset management fund Bernstein. Gautam Chhugani, who also works as managing director of global digital assets at Bernstein, says Grayscale’s legal victory against the SEC last week sets out “firm principles” for regulators to use when evaluating spot crypto ETF applications. In this context, Chhugani said, “The crypto ETF opportunity will not be limited to just Bitcoin. We predict that it will spread to more than one altcoin project…” he says.
Meanwhile, the court last week found the SEC at fault in Grayscale’s spot Bitcoin ETF application. The judge ruled that the SEC should reconsider its decision. Grayscale first filed the lawsuit with the SEC in June 2022. The lawsuit claimed that the regulator’s rejection of the ETF application was discriminatory. The judge said the SEC should reconsider the company’s application to avoid arbitrariness and inconsistency. However, the SEC delayed its decisions on a number of spot-based Bitcoin ETF applications until October. Chhugani highlights the latest fundamental developments in Bitcoin and altcoin projects. He says that these developments make him bullish on the industry in general. Based on this, Chhugani makes the following comment:
Strong performance in the courts (Ripple and Grayscale in two months), rising ETF chances and growing institutional interest indicate a contrast to individual-led crypto cycles of the past. This cycle is a slower developing cycle. But it is based on much stronger foundations, such as regulatory clarity and more strategic long-term players entering the space.
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