IMPORTANT POINTS:
- ARK Invest and 21Shares File for US Ethereum Spot ETF Approval
- Ether and bitcoin initially increased in price after the announcement but returned to their previous values.
- An SEC decision on the ether futures-based ETF is expected in mid-October.
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The world of cryptocurrencies is experiencing a crucial moment. ARK Invest and 21Shares filed an application to obtain regulatory approval of an Exchange-Traded Fund (ETF) that would directly hold Ether (ETH). This application was filed with the US Securities and Exchange Commission (SEC) last Wednesday.
The Ark 21Shares Ethereum ETF marks the start of a new chapter in cryptocurrency history. It is the first attempt to list a fund in the US that invests directly in ETH, the second-largest cryptocurrency by market capitalization. In addition, Coinbase (COIN) Custody Trust Company is expected to be the custodian of the assets.
On the other hand, after the revelation of this news, Ether (ETH) and Bitcoin (BTC) experienced an increase in their prices. However, this uptrend was short-lived, and both cryptocurrencies returned to their pre-announcement values.
It is not the first time that an ETF based on cryptocurrencies has been tried to be introduced to the market. In fact, there have been numerous requests for a coveted Bitcoin ETF previously, including a joint attempt by Ark and 21Shares. The SEC, however, decided last week to postpone a decision on all those applications.
In addition, the SEC is expected to approve the first ETF based on Ether futures soon. A resolution is anticipated by mid-October or sooner.
With the possibility of an Ether ETF, those interested will have a new tool to enter the world of Ethereum. The market will be watching the SEC’s decision in the coming weeks.
