FINANCEREGULATION

Ark Investment Management Challenges SEC Again, Submits ARK 21Shares Ethereum Spot ETF Application

share
Ark Investment Management Challenges SEC Again, Submits ARK 21Shares Ethereum Spot ETF Application

The U.S. Securities and Exchange Commission (SEC) just delayed the approval of all Bitcoin spot ETFs last week, not even approving multiple Ethereum futures ETFs. Despite this, Ark Invest is challenging the SEC once again by partnering with 21Shares to submit an application for an Ethereum spot ETF.

ARK 21Shares Ethereum ETF ARKE Collaboration Institutions

Ark's collaboration with 21Shares to launch the Ethereum ETF ARKE is based on the Ethereum token ETH spot. The collaborating institutions are as follows:

Exchange: Cboe BZX Exchange

Sponsor: 21Shares US LLC

Trustee: Delaware Trust Company

Custodian: Coinbase Custody Trust Company

Reference Index: CME CF Ether-Dollar Reference Rate – New York Variant

Ark Investment serves as the trust's deputy advisor, providing assistance in share marketing.

VanEck proposed as early as 2021, ARK joins to kick off the Ethereum spot ETF competition

According to the SEC website, 21Shares and Ark Investment have been collaborating since 2021, jointly applying for six additional ETFs centered around cryptocurrencies for U.S. investors, including the Ethereum futures ETF ARKZ and the ETF ARKY for Bitcoin and Ethereum futures, none of which have yet been approved by the SEC. The previously submitted Bitcoin spot ETF ARK 21Shares Bitcoin ETF by Ark Investment and 21Shares was also postponed again in mid-August.

Bloomberg ETF analyst James Seyffart also pointed out in a post yesterday that VanEck had actually submitted an S1 application for an Ethereum spot ETF as early as May 2021, so Ark is not the first. The next step is for the exchange to submit a 19b-4 form, which will kick off another competition for Ethereum spot ETFs.

According to previous reports on applications for Bitcoin spot ETFs, the 19b-4 form is submitted by the exchange and will emphasize the ETF's readiness for listing on the exchange, including the widely anticipated surveillance-sharing agreement. However, both Ark 21Shares Ethereum ETF and VanEck Ethereum ETF exchanges are Cboe BZX, and they both submitted a 19b-4 form yesterday. It appears that the starting point for both is aligned.