The report comes amid rising investor demand for regulated exposure to Ether (ETH), the world’s second-largest cryptocurrency by market capitalization.
Switzerland-based 21Shares has taken a major step towards launching a spot Ethereum ETF in the United States. This follows after the company recently submitted an 8-A12B filing with the Securities and Exchange Commission (SEC), an all-important document for its bid.
21Shares Files Key Document, Signalling Confidence in Spot Ethereum ETF Market
The filing signals 21Shares’ intention to register its spot Ethereum ETF with the SEC. Once approved, the fund could be traded on various exchanges within the US market.
Meanwhile, the news comes amid rising investor demand for regulated exposure to Ether (ETH), the world’s second-largest cryptocurrency by market capitalization. As it were, investors are increasingly seeking secure and convenient ways to participate in Ethereum’s price movements. That is, in ways devoid of the complexities of directly acquiring and managing the cryptocurrency itself.
Therefore, 21Shares would be hoping to meet this demand and gain an early-bird advantage over potential competitors in the market.
Building on Spot Bitcoin ETF Momentum
Early in the year, in January, precisely, the US SEC approved 11 spot Bitcoin ETFs. This meant that they all launched and began trading across various exchanges. However, it took several back-and-forths and long years to secure that approval.
Although SEC has grown considerably softer since then, getting approval for a spot Ethereum ETF would be no walk in the park either. It may take several months or even years.
Nonetheless, 21Shares has submitted its 8-A12B filing in confidence of the demand out there. The move also follows the success it has recorded so far with the ARK 21Shares Bitcoin ETF (ARKB), which it launched in partnership with Ark Invest in January.
Since launch, ARKB has attracted significant inflows, exceeding $2.7 billion in assets under management (AUM) as of publication.
Broader Expectations
Potentially, 21Shares’ bid to launch a US spot Ethereum ETF could have far-reaching effects on the crypto itself. It is not only poised to attract a wider range of investors to Ethereum but could also bolster adoption and help its value increase. Moreover, being a regulated ETF also looks well on Ethereum. Especially in the area of legitimacy and credibility within the traditional financial system.
As the SEC continues to look into various spot Ethereum ETF applications, 21Shares’ latest filing is a welcome development. Particularly, for investors seeking exposure to Ethereum through a regulated investment vehicle.
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