Ark Invest and 21Shares File for the First Spot Ether ETF for Listing on CBOE’s BZX Exchange
Two major asset managers Ark Invest and 21Shares have filed with the U.S. Securities and Exchange Commission for the regulatory approval of an exchange traded-fund (ETF) that will directly invest in Ether (ETH).
This is for the first time that any asset manager has filed for a spot Ether ETF. The ARK 21Shares Ethereum ETF, as it's called, is set to offer investors direct access to Ethereum and will be traded on the Cboe BZX Exchange. It will utilize the CME CF Ether-Dollar Reference Rate - New York Variant.
In this endeavor, 21Shares serves as the trust's sponsor, with the Delaware Trust Company acting as the trustee. Handling custodial duties is the Coinbase Custody Trust Company. Additionally, ARK Investment Management has been enlisted as the sub-adviser for the trust and will play a role in marketing the Shares.
This filing comes amidst a wave of applications for a sought-after spot Bitcoin ETF, including a collaborative effort from Ark and 21Shares. It's worth noting that last week, the SEC decided to postpone decisions on all these applications.
Additionally, this filing arrives ahead of the anticipated SEC approval for the very first futures-based Ethereum ETF. We can expect a decision from the SEC on or before mid-October regarding this matter.
In their initial filings with the SEC, the asset managers noted: "The Trust will not invest in derivatives. 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.”
In another 19b-4 filing submitted by Cboe on Wednesday, the exchange announced that the Bank of New York Mellon will serve as the fund's administrator and transfer agent. Much like recent filings for proposed Bitcoin funds, this document also highlights a surveillance-sharing agreement with Coinbase, which was established on June 21.
The Cboe noted: "The Exchange and Coinbase will finalize and execute a definitive agreement that the parties expect to be executed prior to allowing trading of the Commodity-Based Trust Shares”.
Earlier this week, Ark Invest Chief Futurist Brett Winton said that the US would be better off accepting crypto instead of rejecting it. "The U.S. attempts to wound bitcoin come at the expense of U.S. long-term strategic interests,” he wrote.
Although the Ethereum (ETH) price bounce off with the news, it has retraced back and is currently trading at $1,632 levels with a market cap of $195 billion.