Cathie Wood's Ark Invest and 21Shares File for First Spot-Ether ETF in the US: Details

Ark Invest could be the first to list a fund in the US to directly invest in Ethereum.

By Reuters | Updated: 7 September 2023 17:54 IST

Cathie Wood's Ark Invest and 21Shares File for First Spot-Ether ETF in the US: Details

Photo Credit: Reuters

Ether is the second-largest cryptocurrency by market capitalization

Highlights

Cboe Global Markets filed a proposal to list bitcoin ETF and 21Shares
The SEC, however, delayed a decision on whether to approve it
The SEC has rejected dozens of applications for spot bitcoin ETFs

Cathie Wood's Ark Invest and crypto investment firm 21Shares are seeking regulatory approval to set up an exchange-traded fund (ETF) that would directly hold ether, according to a filing with the US Securities and Exchange Commission (SEC) on Wednesday.

It is the first attempt to list a fund in the US that would directly invest in ether, the second-largest cryptocurrency by market capitalization.

In a boost to the crypto sector, the US District of Columbia Court of Appeals last month passed a landmark ruling that the SEC was wrong to reject an application from crypto asset manager Grayscale Investments to list an ETF that tracks the price of bitcoin.

BTC Price Stays Close to $25,800 Mark, ETH and LTC See Small Hikes

The case has been closely watched by the cryptocurrency and asset management industries, which have been trying for years to convince the SEC to approve a spot bitcoin ETF.

Cboe Global Markets earlier this year filed a proposal with the US SEC to list and trade shares of a spot bitcoin ETF by Ark Invest and 21Shares on the Cboe BZX exchange. The SEC, however, delayed a decision on whether to approve it.

The regulator has in recent years rejected dozens of applications for spot bitcoin ETFs, citing inadequate levels of trading surveillance that could leave the underlying spot market subject to fraud and manipulation.

© Thomson Reuters 2023

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