ARK Invest, led by Cathie Wood, has filed for the first spot Ether ETF, along with asset managers 21Shares. This ETF would directly hold Ethereum (ETH), the second-largest cryptocurrency by market capitalization. The filing has been made with the U.S. Securities and Exchange Commission (SEC), marking the first attempt to list such a fund in the United States.
The announcement initially caused a rally in the prices of both Ether and Bitcoin, but the gains were short-lived, and the cryptocurrencies have since returned to pre-filing levels. This filing comes amidst numerous applications for spot Bitcoin ETFs, including a joint effort from ARK and 21Shares, which are all awaiting a delayed decision from the SEC.
Additionally, the SEC is expected to approve the first futures-based Ether ETF by mid-October. The success of Grayscale’s recent court victory against the SEC is likely to encourage the industry to pursue more crypto ETFs. According to a report by broker Bernstein, a spot ETH ETF, given its similarities to BTC in terms of market structure and trading on regulated marketplaces, would be a strong contender.
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