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Ark Invest pioneers Spot ETH ETF filings after SEC delayed its spot BTC ETF application

  • Ark Invest has filed for a Spot Ethereum ETF, becoming the first company to do so.  
  • The firm had also filed for an ETH futures ETF and previously, a spot BTC ETF.
  • Experts attribute the move to a last resort after the SEC’s recent streak of delayed decisions.

Ark Invest and 21Shares have filed for spot Ether Exchange-Traded Funds (ETF), barely two weeks after submitting two joint Ethereum futures ETF and just over a month after the US Securities and Exchange Commission (SEC) delayed a decision on its spot Bitcoin ETF application.

Also Read: Grayscale law firm Davis Polk urges SEC to approve Bitcoin spot ETF, citing best use of resources

Ark Invest files first Spot ETH ETF

Ark Invest and 21Shares have become the first institutional players to file for a Spot Ether ETF as the race for spot crypto funds approvals continues. According to the September 6 filing, the fund is christened “ARK 21Shares Ethereum ETF,” intended to provide direct exposure to ETH. The filing also details that it will be traded on the Cboe BZX Exchange using the CME CF Ether-Dollar Reference Rate – New York Variant.

This is the third application Cathie Wood’s Ark Invest and 21Shares is making with the commission after the SEC delayed a decision on the firms’ spot Bitcoin ETF filing. After two deadlines, June 29 and August 13, the firm decided not to wait for the third one slated for November 11 and has since spread the bet to increase odds for an approval.

The firm had also approached the financial regulator for a joint Ethereum future ETF, meaning one would be just ETH futures, while the other would be both BTC and ETH futures.

Amid these delays, crypto enthusiasts now have their eyes peeled for October where a series of deadlines are due with BlackRock, Bitwise, VanEck, WisdomTree, Invesco, Fidelity, and Valkyrie all hoping for a positive decision.

Meanwhile, ETF specialist Eric Balchunas says that a spot ETH ETF was worth a shot after the commission’s countless delays for the spot BTC ETF filings.

Notably, the market continues to crave for impulse, with crypto prices still consolidating with crucial support levels wearing thin. 

Crypto ETF FAQs

What is an ETF?

An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.

Is Bitcoin futures ETF approved?

Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.

Is Bitcoin spot ETF approved?

Bitcoin spot ETF has been approved outside the US, but the SEC is yet to approve one in the country. After BlackRock filed for a Bitcoin spot ETF on June 15, the interest surrounding crypto ETFs has been renewed. Grayscale – whose application for a Bitcoin spot ETF was initially rejected by the SEC – got a victory in court, forcing the US regulator to review its proposal again. The SEC’s loss in this lawsuit has fueled hopes that a Bitcoin spot ETF might be approved by the end of the year.

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Lockridge Okoth

Lockridge is a believer in the transformative power of crypto and the blockchain industry.

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