Ark Invest and 21Shares Applies for First Spot Ethereum ETF

Cathie Wood’s Ark Invest and asset manager 21Shares made a significant move in the ETF space after applying for the first spot, Ethereum ETF, in the US. 

Ark Invest, under the leadership of Cathie Wood and 21Shares, made waves this week by filing an application for the first spot Ethereum Exchange Traded Fund (ETF) in the US. According to a filing with the US Securities and Exchange Commission (SEC), the ETF, dubbed the “Ark 21Shares Ethereum ETF,” was filed on Wednesday and named Coinbase as its custodian. 

First Spot Ethereum ETF in the US

Ark Invest and 21Shares applied for the first spot Ethereum ETF in the United States. The asset managers await approval from the SEC for an ETF that would directly hold ether (ETH), the second-largest cryptocurrency by market capitalization. 

The application resembled the recent string of spot Bitcoin ETFs that have been delayed by the SEC. The securities agency said it needed more time to decide on the recent ETF filings after Grayscale secured a courtroom victory last week. Grayscale was victorious in its lawsuit against the SEC over the agency’s reasoning for failing to approve spot ETFs. The judge ruled in favour of Grayscale as the SEC could not fully explain how futures ETFs materially differed from spot ETFs. 

In its filing, Ark Invest names Coinbase Custody Trust Company as its custodian. The crypto exchange would be responsible for holding Ethereum backing the shares of Ark 21Shares Ethereum ETF. If approved, the ETF would trade on the Cboe BZX Exchange. 

SEC Receives Futures-Based Ethereum ETF Filings

The securities agency received previous filings for Ethereum futures ETFs but has yet to approve any. Bloomberg’s senior ETF analyst, Eric Balchunas, recently commented on the state of these futures ETFs. He said:

“In the past, the SEC has told Ether Futures ETF filers to withdraw 5-6 days after the first filing hit. We are now on Day 13 and no withdrawals. Not home free yet, but very good sign. As we predicted these will likely hit market in mid-October.” 

Ark Invest’s application, however, goes a step further, resembling applications of recent Bitcoin spot ETFs. Futures-based Bitcoin ETFs have traded in the US since ProShares launched its futures ETF on the New York Stock Exchange in 2021. 

Ark Invest, 21Shares Apply for Futures ETH ETF

Last week, it was revealed that Ark Invest and 21Shares joined forces to apply for a futures-based Ethereum ETF. 

Per recent SEC filings, Ark Invest and 21Shares proposed the ARK 21Shares Active Ethereum Futures ETF (ARKZ) and the Ark 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY). 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.