In an exciting new development for crypto enthusiasts, asset managers ARK Invest and 21Shares have taken strides towards regulatory approval for an innovative exchange-traded fund (ETF). The proposed ETF, dubbed as Ark 21Shares Ethereum ETF, will directly invest in ether (ETH). The document has been submitted to the U.S. Securities and Exchange Commission (SEC), marking a unique shift in asset management.
This announcement marks the first time that a potential ETF like this, focusing directly on ETH (the second-largest cryptocurrency per market capitalization) is being attempted in the U.S. ARK and 21Shares plan to have the fund’s assets maintained by Coinbase Custody Trust Company.
Interestingly, the initial news gave both ether and bitcoin a slight, albeit brief, surge in prices. Rather intriguingly though, both digital currency values seem to have reverted to their levels prior to the ETF proposal announcement.
ARK Invest’s ETF filing is the buzzword in the crypto world, especially as it follows an array of applications aiming for a much-desired bitcoin ETF. In fact, both ARK and 21Shares have previously joined forces with such an attempt. It’s worth noting that the SEC has announced a delay in its decision concerning these applications.
Nevertheless, anticipate high-energy times in the world of crypto as the ETF filing has set the stage for what could be a regulatory stamp of approval for the first futures-based ether ETF. The decision is anticipated to come from SEC on or before mid-October.
Despite the potentiality of this venture, some scepticism lingers around this innovation. The fluctuation of crypto prices on the news of the filing, for instance, raises questions around the volatility of the crypto market and how ready it really is for such transformative financial instruments. Indeed, with ARK and 21Shares paving the way, the crypto world waits as the SEC decides, nudging the cryptosphere in a groundbreaking direction, yet with an undeniable edge of uncertainty.
In sum, while this filing opens up new possibilities and heights for crypto investment through ETFs, it also holds the market in suspense as we all curiously await the SEC’s decision. Invigorating as these developments may be, the unpredictability synonymous with the world of crypto ever looms on the horizon.
Source: Coindesk
