Ethereum ETF: ARK Invest and 21Shares Forge Path in Crypto
- ARK Invest and 21Shares are setting the standard after filing for the second spot ether ETF in the U.S.
- Ethereum could outperform Bitcoin and possibly flip it if its spot ETF is approved ahead of the Bitcoin ETF.
ARK Invest aims to be the first firm to launch a spot Ether spot ETF. As predicted by several experts, the launch of a spot Bitcoin ETF would open the floodgates for more crypto ETF options. Though the U.S. Securities and Exchange Commission (SEC) is yet to approve the many filed spot Bitcoin ETFs, ARK Invest is already looking to launch an Ether spot ETF.
All signs point to the SEC inevitably approving a spot Bitcoin ETF. Experts assume that the regulatory agency will approve multiple filings simultaneously. Other crypto ETFs led by Ethereum spot ETFs are set to follow. ARK Invest is taking the lead on this, Working with 21Shares, the firm has filed for the first Ethereum spot ETF.
The filing comes ahead of the launch of Ether-futures ETFs. The SEC is said to be poised to approve this in mid-October. Bitcoin futures ETFs were launched in 2021, triggering a 60 percent rally. The market analysts expect Ethereum (ETH) to enjoy the same positive reaction if the Ethereum futures ETF is approved.
An Ethereum spot ETF would be an even more significant achievement for the 2nd largest cryptocurrency by market cap. Unlike the filed Ether futures ETFs, the new spot filing shows that Ark Invest would be able to hold ETH directly. This would drive institutional demand for the cryptocurrency and drive prices higher.
Breaking News! ARK Invest and 21Shares are set to revolutionize crypto investing with the FIRST US spot #Ether ETF! While the SEC mulls over Bitcoin ETFs, we're paving the way for #Ethereum enthusiasts to dive in. #ETHETF pic.twitter.com/CFFkHB1Ar5
— Collin Brown (@CollinBrownXRP) September 7, 2023
The filings come as the SEC mulls over a Bitcoin spot ETF. Analysts are increasingly confident that the SEC will approve the Bitcoin ETF before the end of the year. Grayscale’s recent court victory against the SEC is one of the many signs that the SEC will have to approve the ETF soon. While the Bitcoin ETF has taken years for approval, the Ethereum ETF is set to take months.
Interestingly, since news broke of ARK Invest filing for an Ethereum spot ETF, VaEck has come out on X (formerly Twitter) to reveal that it filed for the same back in 2021. This is evidence that there is great interest in the product, and numerous filings could be on the way.
Late to the party? We filed our S-1 for a Spot Ether ETF back on 5/7/2021. https://t.co/hYE6TG90Q3
— VanEck (@vaneck_us) September 6, 2023
It is increasingly evident that the U.S.’s regulatory approach is holding it back from being a leader in this technological arena. In Canada, the regulators approved a Bitcoin spot ETF and a spot Ether ETF in April 2021.
Following news of ARK Invest led by Cathie Wood, ETH enjoyed a short-lived rally but quickly retracted. At the time of press, ETH is exchanging for $1,640 after a less than 1 percent change in the last 24 hours. The second largest coin in the crypto market has a total market cap of around $196 billion.