Two popular
companies in the exchange-traded funds (ETFs) sector, VanEck and ARK Invest, demonstrate
that the old adage ‘when one door closes, another opens’ may hold true in the
cryptocurrency market. After unsuccessfully attempting to create a spot Bitcoin
(BTC) ETF, companies have decided to try their luck with another instrument. They
both chose Ethereum (ETH), the second-largest crypto asset by market
capitalization.
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On 6
September, the Chicago Board Options Exchange (CBOE) filed two applications
with the Securities and Exchange Commission (SEC) to create VanEck Ethereum ETF
and ARK 21Shares Ethereum ETF, which would be listed on the CBOE’s BZX
exchange.
According
to Bloomberg analyst James Seyffart, who specializes in the ETF market, this
officially kicks off the race to establish the first spot Ethereum ETF in the
United States. Seyffart predicts that these applications should be decided by
May 2024.
BOOM: 19b-4 filing from @vaneck_us AND @ARKInvest/@21co__ for spot Ethereum ETFs.
This is different from the earlier Ark/21shares S-1 filing because this will ultimately start that clock we are so used to following with spot Bitcoin filings. pic.twitter.com/qP7nydc33w
— James Seyffart (@JSeyff) September 6, 2023
He also
speculates on when Grayscale, another major player that previously applied a
similar Bitcoin instrument, will join the race.
Keep Reading
How long before we see a 19b-4 from @Grayscale to convert $ETHE into an ETF? pic.twitter.com/pzSEcMrtZB
— James Seyffart (@JSeyff) September 6, 2023
SEC Delays Decision-Making
The move
toward Ethereum comes shortly after the SEC once again delayed its decision on
creating spot Bitcoin ETFs. Companies like WisdomTree, Valkyrie, and Invesco
were expecting a final answer from the SEC in early September, but the agency
has decided to give itself until mid-October.
JUST IN: SEC is opting to delay (as expected) on spot bitcoin ETF deadlines pic.twitter.com/W4JjOji6L2
— Eric Balchunas (@EricBalchunas) August 31, 2023
Two days before the SEC’s announcement, a federal appeals court ruled that the
agency had wrongly denied another investment firm, Grayscale Investments, the
opportunity to create a spot Bitcoin ETF. The D.C. Circuit Court of Appeals has
ordered the SEC to reevaluate Grayscale’s application. While the regulatory
body reviews the court’s decision, there is no guarantee that its final verdict
will favor Grayscale.
This has
dampened the euphoria that emerged in the cryptocurrency market in June when
BlackRock, the largest asset manager, filed an application to create a Bitcoin
ETF as well. Experts speculated that when such a major player wants to enter
the market, a decision from the SEC would only be a matter of time. However,
these forecasts have proven to be far from the truth.
Currently,
the only crypto ETFs available on the American market are those tracking the
price of Bitcoin futures. For years, the SEC has claimed that it cannot accept
instruments based on spot prices due to the volatile nature of the market,
unclear regulations, and difficulties in determining the base price on a
decentralized market.
Two popular
companies in the exchange-traded funds (ETFs) sector, VanEck and ARK Invest, demonstrate
that the old adage ‘when one door closes, another opens’ may hold true in the
cryptocurrency market. After unsuccessfully attempting to create a spot Bitcoin
(BTC) ETF, companies have decided to try their luck with another instrument. They
both chose Ethereum (ETH), the second-largest crypto asset by market
capitalization.
On 6
September, the Chicago Board Options Exchange (CBOE) filed two applications
with the Securities and Exchange Commission (SEC) to create VanEck Ethereum ETF
and ARK 21Shares Ethereum ETF, which would be listed on the CBOE’s BZX
exchange.
Discover StealthEX.io – the future of cryptocurrency. Swap instantly across 1000+ coins, no sign-up, secure, and private. Dive into the new age of crypto!
According
to Bloomberg analyst James Seyffart, who specializes in the ETF market, this
officially kicks off the race to establish the first spot Ethereum ETF in the
United States. Seyffart predicts that these applications should be decided by
May 2024.
BOOM: 19b-4 filing from @vaneck_us AND @ARKInvest/@21co__ for spot Ethereum ETFs.
This is different from the earlier Ark/21shares S-1 filing because this will ultimately start that clock we are so used to following with spot Bitcoin filings. pic.twitter.com/qP7nydc33w
— James Seyffart (@JSeyff) September 6, 2023
He also
speculates on when Grayscale, another major player that previously applied a
similar Bitcoin instrument, will join the race.
Keep Reading
How long before we see a 19b-4 from @Grayscale to convert $ETHE into an ETF? pic.twitter.com/pzSEcMrtZB
— James Seyffart (@JSeyff) September 6, 2023
SEC Delays Decision-Making
The move
toward Ethereum comes shortly after the SEC once again delayed its decision on
creating spot Bitcoin ETFs. Companies like WisdomTree, Valkyrie, and Invesco
were expecting a final answer from the SEC in early September, but the agency
has decided to give itself until mid-October.
JUST IN: SEC is opting to delay (as expected) on spot bitcoin ETF deadlines pic.twitter.com/W4JjOji6L2
— Eric Balchunas (@EricBalchunas) August 31, 2023
Two days before the SEC’s announcement, a federal appeals court ruled that the
agency had wrongly denied another investment firm, Grayscale Investments, the
opportunity to create a spot Bitcoin ETF. The D.C. Circuit Court of Appeals has
ordered the SEC to reevaluate Grayscale’s application. While the regulatory
body reviews the court’s decision, there is no guarantee that its final verdict
will favor Grayscale.
This has
dampened the euphoria that emerged in the cryptocurrency market in June when
BlackRock, the largest asset manager, filed an application to create a Bitcoin
ETF as well. Experts speculated that when such a major player wants to enter
the market, a decision from the SEC would only be a matter of time. However,
these forecasts have proven to be far from the truth.
Currently,
the only crypto ETFs available on the American market are those tracking the
price of Bitcoin futures. For years, the SEC has claimed that it cannot accept
instruments based on spot prices due to the volatile nature of the market,
unclear regulations, and difficulties in determining the base price on a
decentralized market.
