In the midst of the United States Securities and Exchange Commission (SEC) delaying its decision on ARK Investment Management's spot Bitcoin exchange-traded fund (ETF), the firm has put forward a proposal for an investment vehicle with exposure to Ether.
On September 6, ARK Invest and 21Shares jointly submitted a request to the SEC, seeking approval for the listing of shares of a spot Ether ETF on the Cboe BZX Exchange. This investment product, named the "ARK 21Shares Ethereum ETF," is set to have cryptocurrency exchange Coinbase serve as its custodian. It will track the performance of Ether based on the Chicago Mercantile Exchange CF Ether-Dollar Reference Rate.
The proposal from ARK Invest and 21Shares is just one among many spot crypto ETFs currently under review by the SEC. Following a successful appeal by asset manager Grayscale, which prompted the SEC to reconsider allowing its Bitcoin Trust to convert into a Bitcoin ETF, various firms seem to hold optimism regarding regulatory approval.
It's worth noting that on August 31, shortly after the decision regarding Grayscale's ETF, the SEC announced a delay in deciding whether to approve or deny spot Bitcoin ETF applications from seven firms, including BlackRock, the world's largest asset manager. Notably, ARK Invest and 21Shares' spot Bitcoin ETF was not included in this delay, as its next deadline for approval, denial, or further delay is scheduled for November 11.
This move represents the third attempt by ARK Invest and 21Shares to launch a spot Bitcoin ETF since 2021. In August, the firms also proposed the listing of two Ether (ETH) futures ETFs. ETFs linked to cryptocurrency futures have had relatively more success with the SEC, as several such products received approval in 2021.
The announcement of the ETF filing had a brief positive impact on the price of Ether (ETH), causing it to surge by approximately 3% from $1,623 to $1,669 before settling in a range between $1,620 and $1,640, according to data from Cointelegraph Markets Pro.
As the SEC continues to evaluate various crypto-related ETF proposals, market participants eagerly await the regulatory decision that could significantly impact the accessibility and adoption of digital assets among traditional investors.