Cathy Wood’s ARK Invest has filed for its first spot Ethereum ETF. The Ark 21Shares Ethereum ETF is the first attempt in the US to list such a fund that directly invests in the leading altcoin ETH.
ARK Invest took the first step for a 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. The Ark 21Shares Ethereum ETF stands out as the first attempt in the US to list such a fund that directly invests in the leading altcoin ETH. The fund will hold the assets with the Coinbase Custody Trust Company.
The news initially boosted the price of Ethereum and Bitcoin. However, the rally was short-lived and did not last long. Leading crypto and leading altcoin have returned to prices seen before filing. The filing follows a series of applications for a much-loved spot Bitcoin ETF, including a joint venture between Ark and 21Shares. cryptocoin.com As you follow, the SEC delayed its decision on all these applications last week. The filing also came before the expected SEC approval of the first futures Ethereum ETF. Expectations are that the SEC will make a decision in mid-October or before.
Bernstein: Multiple altcoin ETFs of $676,000,000,000 coming
A senior analyst at global wealth management fund Bernstein says multiple altcoin exchange-traded funds (ETFs) are likely to be launched if the spot Bitcoin (BTC) ETF is approved. Gautam Chhugani, who also works as global digital assets general manager at Bernstein, says that Grayscale’s legal victory over the SEC last week sets “hard principles” for regulators to use when evaluating spot crypto ETF applications. In this context, Chhugani said, “Crypto ETF opportunity will not be limited to Bitcoin only. We anticipate it will spread to multiple altcoin projects as well…” he says.
Meanwhile, the court found the SEC faulty in Grayscale’s spot Bitcoin ETF application last week. The judge decided that the SEC should reconsider its decision. Grayscale first filed a lawsuit with the SEC in June 2022. In the lawsuit, she argued that the regulator’s rejection of her 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 have put him on the rise in the industry in general. Based on this, Chhugani makes the following comment:
Strong performance in the courts (Ripple and Grayscale in two months), increased ETF chances, and increased institutional interest suggest a situation in contrast to past individual-led crypto cycles. This cycle is a slower growing cycle. But it rests on much stronger foundations, such as regulatory clarity and more strategic long-term players entering the space.
