The U.S. Securities and Exchange Commission (SEC) has temporarily postponed its ruling on seven bitcoin exchange-traded fund (ETF) applications. Meanwhile, a fresh wave of applications has emerged, with Ark Invest and 21shares, in addition to Vaneck, seeking approval for spot ethereum ETFs. These forthcoming funds, should they receive the green light, will enable investors to gain direct access to ether’s price movements.
Ethereum ETF Frenzy
As fund managers eagerly pursue SEC approval for their spot bitcoin ETFs, this week has witnessed a dynamic twist with the introduction of two ethereum-based spot ETF applications. In the initial submission, Ark Invest and 21shares have joined forces, with the latter set to assume the role of the trust’s sponsor. Notably, the ETF will entrust Coinbase Custody with the crucial responsibility of safeguarding the fund’s valuable ether reserves.
“The trust will not invest in derivatives,” the Ark and 21shares’ filing details. “The sponsor believes that the shares are designed to provide investors with a cost-effective and convenient way to invest in ether without purchasing, holding and trading ether directly.”
BOOM: ARK just filed for a Spot Ether ETF, the first one.. prob more coming imminent pic.twitter.com/PjK5aSNPlS
— Eric Balchunas (@EricBalchunas) September 6, 2023
In a development that occurred back in June 2023, Coinbase was appointed as the surveillance-sharing agreement (SSA) partner for Ark Invest and 21shares. This strategic alliance comes as these entities gear up for their ETF venture. Meanwhile, the fund also secured a partnership with the Bank of New York Mellon and has its sights set on listing through Cboe’s BZX exchange.
Vaneck, in a parallel move, has embarked on a comparable journey, with Coinbase serving as their SSA partner as well. Vaneck assumes the crucial roles of market agent and sponsor for the ETH trust, with State Street Bank handling the administration aspects. According to Vaneck’s filing, each share will represent a fractional interest in the trust’s net assets, primarily comprising ETH securely held by the custodian on behalf of the trust.
“The trust generally does not intend to hold cash or cash equivalents,” Vaneck’s registration details. “However, there may be situations where the trust will unexpectedly hold cash on a temporary basis.”
What do you think about the two spot ether ETF filings? Share your thoughts and opinions about this subject in the comments section below.
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