Ace hedge fund manager Cathie Woods’ Ark Invest has filed for the listing of the first-ever spot Ethereum (ETH-USD) ETF (exchange-traded fund) with the U.S. Securities and Exchange Commission (SEC). ARK and cryptocurrency investment firm 21Shares are seeking to list a fund that will directly hold ether, which is the second largest cryptocurrency after Bitcoin (BTC-USD). The fund’s proposed name is Ark 21Shares Ethereum ETF, and it will be listed only in the American markets. The fund will custody the assets with crypto exchange Coinbase Global (NASDAQ:COIN).
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The cryptocurrency sector and asset managers worldwide have been trying for years to list a Bitcoin ETF. This is the first attempt by a fund to list an Ether ETF. Ark Invest’s application for launching a Bitcoin ETF is still awaiting regulatory approval. Ark and 21Shares had applied to list the Bitcoin ETF on the Cboe BZX exchange.
All earlier attempts to launch a spot Bitcoin ETF have been rejected on grounds of inadequate surveillance. The SEC worries that spot cryptocurrency ETFs are vulnerable to fraud and manipulation owing to the absence of a proper regulatory framework and surveillance procedures. However, last month, the U.S. District of Columbia Court of Appeals ruled that the SEC’s rejection of Grayscale Investment’s application to list a bitcoin tracking ETF was incorrect. This major win has prompted several funds to list other bitcoin-tracking ETFs. Notably, the SEC is set to approve the first ETF based on Ether Futures by mid-October.
Is Ethereum a Good Investment?
Ethereum is the second-largest cryptocurrency by market capitalization. This proves its dominance and high trading ability in the crypto market. Currently, the price of ETH-USD is hovering around $1,636, representing a 66.7% discount from its all-time high. On November 10, 2021, ETH touched $4,865.94 thanks to the crypto boom. Even so, year-to-date, ETH has gained 35.6%.
