US SEC Seeks Public Comments on ARK & VanEck’s Spot Ethereum ETFs

ARK Invest ETF Securities and Exchange Commission
Last updated:
Author
Sujha Sundararajan
Author Categories
About Author

Sujha has been recognised as 🟣 Women In Crypto 2024 🟣 by BeInCrypto for her leadership in crypto journalism.

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Source: Adobe

The US Securities and Exchange Commission (SEC) is reviewing applications for spot Ethereum exchange-traded funds (ETFs) from two asset managers – ARK Invest and VanEck.

According to the agency’s release dated September 21, the SEC has sought public comments on the potential benefits and risks of approving these ETFs. The regulator has opened a 45-day public comment period for both filings.

“The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.”

On September 6, the Chicago Board Options Exchange (Cboe BZX Exchange) filed two 19b-4 applications to the United States securities regulator, requesting for the ARK 21 Shares and VanEck Ethereum ETF investment products to be listed on the exchange.

While Ark 21Shares submitted S-1 filing on September 6, VanEck filed for the same in July 2021.

The proposed ETFs will track the price of Ether using the CME CF Ether-Dollar Reference Rate and adjust for expenses and liabilities, the filings said.

However, it is important to note that the review by the SEC does not guarantee acceptance of these ETFs. In fact, the first Ether futures ETF is slated to launch next month.

The regulator has so far favored futures-based ETFs for Bitcoin (BTC) and Ether (ETH), citing that investor protections provided by the CME futures market cannot match with that of a spot ETF.

Spot Ethereum ETF Race is On

Not long before, a Bloomberg ETF analyst James Seyffart noted that the spot Ether ETFs from ARK 21 Shares and VanEck “will ultimately start that clock.”

“The Spot Ethereum ETF Race is officially on. It’s early but I’d estimate a final deadline on these applications to be around ~May 23, 2024,” he said in a Tweet, early this month.

Seyffart also predicted that more spot Ethereum ETF filings would come in the coming days.

However, Ethereum ETFs come with their own obstacles such as regulatory approval. The regulator’s key concerns include investor protection, market manipulation, and underlying asset volatility. While there are unaddressed issues, spot Ethereum ETFs have the potential to increase acceptance, liquidity, and interest in the Ethereum ecosystem.

More Articles

Blockchain News
Coinbase Aims to Re-Enter India After Over a Year Away from the Market: Report
Shalini Nagarajan
Shalini Nagarajan
2025-02-13 07:08:40
Altcoin News
Federal Reserve Governor Says Stablecoins Extend US Dollar Reach, Calls for Regulatory Framework
Ruholamin Haqshanas
Ruholamin Haqshanas
2025-02-13 06:37:31
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors