21Shares and Cathie Wood’s ARK Invest is doubling down on its crypto ETF ambitions, filing a first-of-its-kind spot Ether ETF application.
Cathie Wood’s ARK Investment Management has teamed up with 21Shares in an application for a spot Ether exchange traded fund (ETF) – the first of its kind.
The fund, called the ARK 21Shares Ethereum ETF, would trade under the ticker ARKE. The application was submitted to the US Securities and Exchange Commission (SEC) on Wednesday, September 6, the report outlines.
ARK’s CEO and CIO Cathie Wood told Bloomberg, “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 … And it’s always nice to be first.”
In a similar vein, Ophelia Snyder, co-founder and President of 21Shares, commented on how the Ether market is becoming “much more established”, particularly around futures products.
The application is just the latest in ARK and 21Share’s ETF ambitions.
On August 24, ARK and 21Shares filed a similar application with the SEC for an Ethereum futures ETF application. The two proposed Ethereum futures ETFs are “ARK 21Shares Active Ethereum Futures ETF” (ARKZ) and the “ARK 21Shares Active Bitcoin Ethereum Strategy ETF” (ARKY).
Unlike a spot Ether ETF, an Ethereum futures ETF would enable investors to speculate on the future price of Ethereum without actually owning the cryptocurrency itself, providing exposure and diversification to Ethereum with less risk than direct ownership.
The ARKZ ETF would invest a quarter of its total assets in cash-settled Ethereum futures contracts, such as those traded on the Chicago Mercantile Exchange (CME), according to the SEC filing. ARKY on the other hand will encompass both Bitcoin and Ethereum futures contracts.
The road to approval however remains long. Last week, the SEC delayed making a decision on seven key Bitcoin ETFs, including BlackRock, VanEck and Wisdomtree.
The Commission has a full 240 days from the point of application to make a final decision, meaning we can expect a decision on Ark’s Ether ETF by around mid-May.
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