ARK Invest and 21Shares, two leading asset managers in the crypto space, have filed for the first spot in Ether ETFs in the US market. The proposed exchange-traded funds (ETFs) would directly hold Ether (ETH), the second-largest cryptocurrency by market cap, and track its price movements.
Companies Set Their Sights on Ethereum ETFs
The ETFs, named the ARK 21Shares Ethereum ETF, are designed to offer investors exposure to Ethereum (ETH) without the need to buy, store, or manage the digital asset themselves. The ETFs would custody the assets with Coinbase Custody Trust Company, a regulated crypto custodian.
The Delaware Trust Company would serve as the trustee of the ETFs, while ARK Investment Management would act as the sub-adviser and assist in marketing the shares.
The ETFs would use the CME CF Ether-Dollar Reference Rate – New York Variant as the benchmark for pricing and valuation. The CME Group, a major derivatives exchange, launched Ether futures contracts earlier this year, providing a regulated platform for institutional investors to trade the cryptocurrency.
The filing comes amid growing anticipation for the approval of the first futures-based Ethereum ETF in the US, which could happen by mid-October. The SEC has recently delayed its decision on several Bitcoin futures ETF applications, citing concerns over market manipulation and investor protection.
However, some analysts believe that a spot Ether ETF could have a better chance of getting the green light from the SEC, given its similarity to Bitcoin in terms of market structure and liquidity. A spot Ether ETF would also have lower fees and tracking errors than a futures-based one, as it would not involve rolling over contracts or paying premiums.
If approved, the ARK 21Shares Ethereum ETFs would be a game-changer for the crypto industry, as they would provide easy and secure access to Ethereum (ETH) for retail and institutional investors alike. Ethereum (ETH) is currently trading at $1,637 with a market cap of $196 billion.
