- 21Shares and ARK Investment Management are working together to create the ARK 21Shares Ethereum ETF.
- The ETF, pending SEC approval, could become the first US exchange-traded fund backed by Ether.
- Grayscale’s recent victory against the SEC could impact regulatory decisions.
The first US exchange-traded funds (ETFs) that invest in Ether are being developed by 21Shares and ARK Investment Management, two companies that provide crypto exchange-traded products.
According to a filing with the US Securities and Exchange Commission (SEC), both companies were planning to launch the ARK 21Shares Ethereum ETF. Reports say that if the SEC approved the project, it would be the first US ETF backed by the second largest crypto.
Moreover, reports showed that 21Shares and ARK have worked together since 2021 and have six other crypto ETF projects for US investors. One of their projects would hold Bitcoin and Ethereum futures, which haven’t been approved yet, according to the SEC website. The two companies are seeking to offer a spot-Bitcoin ETF, as many companies are reportedly attempting to do.
Another ETF project is under consideration that is reported to be the first US spot-Bitcoin fund. Grayscale Investments, an American digital currency asset management firm, is attempting to convert its Bitcoin trust to an ETF, yet a few analysts claim that this “paves the way for fraud.” The project didn’t get approved by the SEC, and regulators weren’t approving it due to fraud and price manipulation, according to Coin Edition.
The judge ruling in the Grayscale vs. SEC lawsuit ruled in favor of Grayscale and claimed the SEC was wrong in rejecting their ETF application. Furthermore, the judge stated that the SEC’s reasons for rejection were inadequate.
21Shares Co-founder Ophelia Snyder stated that Grayscale’s win could be considered a market development. She said:
There have been considerable market developments over the last couple of weeks—Grayscale winning their lawsuit being one of them, some of the statements out of the judiciary around how they’re assessing different products, as well as, quite frankly, the fundamentals in the market.
Catherine Wood, chief executive officer of ARK Invest, said, “There’s been so much regulatory controversy about a Bitcoin spot ETF that I guess many people thought it was a step too far — but we don’t.”
The post 21Shares and ARK File for First US Spot-Ether ETFs, Pending SEC Approval appeared first on Coin Edition.