ARK Invest, in partnership with 21Shares, has approached the U.S. Securities and Exchange Commission (SEC) to get a green light for a unique exchange-traded fund (ETF) that will directly hold Ethereum’s ether (ETH). If approved, this would mark the first ETF in the U.S. to have direct investments in ETH, a significant player in the cryptocurrency market, standing second only to Bitcoin in terms of market value.
Coinbase (COIN) Custody Trust Company has been earmarked to handle the assets for this ETF. Following this announcement, Ethereum and Bitcoin experienced a spike in their prices. However, this uptick didn’t last long, and both cryptocurrencies soon settled back to their original values before the ETF news broke.
Previously, there have been several attempts by various entities to establish a Bitcoin ETF, with ARK Invest and 21Shares also joining the race. Yet, the SEC chose to postpone their decision on these applications just last week. Now, all eyes are on the SEC as they gear up to make a ruling on the first futures-based ether ETF, with a decision anticipated by mid-October.