đ„ The Rise of Ethereum Spot ETFs: Ark Invest and 21Shares Enter the Market â
In a bold move that reflects the growing interest of big institutions for cryptocurrency investments, Ark Invest and 21Shares have filed for Ark 21Shares, a spot ether ETF offering in the US market.
This strategic move comes at a time when the SEC is reconsidering its stance on spot Bitcoin ETFs, following a recent court loss to Grayscale Investments.
With the potential approval of the Ark 21Shares Ethereum ETF, investors would have direct exposure to the second largest cryptocurrency by market capitalization, Ethereum .
What Prompted the Need for Ether Spot ETFâïž
The decision by Ark Invest and 21 Shares to launch a spot ether ETF is timely, given recent developments in the cryptocurrency market.
The SEC's loss to Grayscale Investments in a court case challenging the approval of bitcoin ETF has put the regulator on its back foot. As a result, the chances of US spot bitcoin ETF approval have significantly increased. This shift in sentiment has opened the door for other cryptocurrency ETFs, including spot ether offerings.
Additionally Ethereum has a market capitalization of approximately $195 billion, ranking second in the cryptocurrency market, behind only Bitcoin. Ethereum's growing popularity is due to its smart contract functionality, which has made it a preferred platform for decentralized applications, NFTs, and decentralized financial protocols.
