ARK Invest and 21Shares file for spot Ethereum ETF

ARK Invest and 21Shares filed with the SEC proposal to launch the spot Ethereum-ETF.

ARK 21Shares Ethereum ETF, if approved, would give investors direct exposure to the price movements of the second-largest cryptocurrency, with the instrument listed on CBOE BZX.

The fund’s custodian will be Coinbase Custody Trust Company. The exchange is also mentioned in the joint surveillance agreement to prevent fraud and market manipulation.

Bank of New York Mellonwill act as administrator and transfer agent.

The trust will not invest in derivatives. The sponsor believes that the shares of the [ETF] will provide an economically efficient and convenient way to invest in Ethereum without direct purchase, ownership and trading of the asset— the filing states.

CBOE BZX, in the filing, cited a court ruling in the case Grayscale against the SEC.

The court resolved this conflict, finding that the Commission failed to provide a clear explanation as to why it approved the Bitcoin futures ETF while denying the listing and trading of GBTC, the filing states.

On September 6, VanEck filed a similar filing for launching a spot Ethereum-based ETF.

Earlier in August, ARK Invest and 21Shares filed a proposal with the SEC for two Ethereum futures ETFs.

Later the SEC delayed the decision on the firms’ proposals to launch a spot Bitcoin ETF.

Earlier, ARK Invest CEO Kathy Wood forecasted a favorable ruling on several applications.