Cathie Wood’s ARK, 21Shares file for spot ethereum ETF By

© Reuters– Asset managers ARK Invest and 21Shares jointly filed an application for an exchange-traded fund that directly invests in world no.2 cryptocurrency ethereum, a filing showed on Wednesday. 

The ETF, proposed as the Ark 21Shares Etherum ETF, will custody the assets with U.S. crypto exchange Coinbase Global Inc (NASDAQ:), the two asset managers said in a filing with the Securities and Exchange Commision (SEC). It is also the first attempt to list a spot ETF for ethereum in American markets. 

The application comes after a court ruled in favor of digital asset manager Grayscale’s application for a spot bitcoin ETF, which the SEC had rejected last year. The ruling marked more progress towards the first ever listing of a spot bitcoin ETF in the U.S., although the SEC said it will appeal the decision.

World no. 1 token has seen several attempts at listing a spot ETF in the U.S., including joint forays by ARK and 21Shares. But the SEC has so far shot down all applications.

The commission is also expected to announce its verdict on an ethereum futures ETF application in the coming months. 

and bitcoin marked a brief rally after the filing, but reversed all gains and traded negative by 21:27 ET (01:27 GMT). Crypto markets were battered by a resurgence in the dollar this week, as markets awaited more cues on U.S. monetary policy before a Federal Reserve meeting later in the month. 

While Grayscale’s court victory against the SEC is expected to attract more ETF filings and institutional interest towards crypto, the industry is also grappling with a severe decline in retail interest, following a string of high-profile scams and bankruptcies over the past year. 

SEC action against the industry’s biggest players- particularly crypto exchange Binance- has also rattled sentiment towards the sector. 

Still, ARK’s Wood has maintained a largely bullish outlook for the crypto sector. Her ARK funds are together among the biggest shareholders in Coinbase.