ARK Invest and 21Shares have submitted a proposal to the SEC to launch a spot Ethereum-ETF.
The ARK 21Shares Ethereum ETF, if approved, will provide the ability to directly take risk on fluctuations in the price of the second-largest cryptocurrency by capitalization with a CBOE BZX listing of the instrument.
The fund’s custodian will be Coinbase Custody Trust Company. The exchange is also mentioned in the joint supervision agreement to prevent fraud and market manipulation.
Bank of New York Mellon will act as administrator and transfer agent.
“The trust will not invest in derivatives. The sponsor believes that the shares [ETF] will provide a cost-effective and convenient way to invest in Ethereum without directly buying, owning and trading an asset,” — stated in the application.
CBOE BZX cited a court ruling in Grayscale v. SEC in the proposal.
“The court resolved this conflict by finding that the Commission failed to provide a clear explanation as to why it approved bitcoin futures ETFs while rejecting the offer to list and trade GBTC,” – it says.
On September 6, VanEck filed a similar application to launch an Ethereum-based spot exchange-traded fund.
Recall that in August, ARK Invest and 21Shares sent an offer to the SEC for two futures ETFs based on the second largest cryptocurrency by capitalization.
The SEC later delayed a decision on firms’ proposal to launch a Bitcoin-based spot exchange-traded fund.
Earlier, the head of ARK Invest, Cathy Wood, predicted a positive decision on several applications at once.
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