Ethereum ETFs filed with SEC for spot-equivalent ETF

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Ethereum ETFs filed with SEC for spot-equivalent ETF

Ark Invest, Cathie Wood's $60B investment firm, and 21Shares, a digital asset management firm, filed an application Sept. 6 with the SEC for a spot-equivalent fund tracking the price of Ether.

The first proposal for a spot-ether ETF in the U.S. is the Ark 21Shares Ethereum ETF. The ETF would hold ETH on behalf of the trust, and the trust would reference the CME CF Ether-Dollar reference rate and adjust for expenses and liabilities. The ETF's shares would be valued daily at 4pm EST based on the reference index.

The news had little effect on the market, with ETH trading around flat over the past seven days.

It comes as some analysts predict that it may only be a matter of time before a spot crypto ETF receives approval from U.S. regulators.

On Aug. 29, the U.S. District of Columbia Court of Appeals sided with Grayscale against the SEC, finding that the agency failed to justify its decision to reject the assets manager's application for a spot Bitcoin ETF last year. The court determined that the SEC's decision was 'arbitrary' considering the similarities between Grayscale's proposed product and ETFs tracking Bitcoin futures, previously greenlit by the agency.

In June, the SEC filed a flurry of applications for spot Bitcoin ETFs after BlackRock, the world's largest asset manager, submitted its own filing.

The prospectus notes risks posed by the decentralization of Ethereum's developers and validators, such as network disruptions such as hard forks. A mention of the dangers posed by the progress of quantum computing is also warranted.