ARK Invest by Cathie Woods has filed an application with the US SEC and is now awaiting approval for implementing the US Spot Ether ETF. The US Securities and Exchange Commission has been rejecting applications left, right, and center when it comes to the Spot BTC ETF; however, the one with ether could be a different story, especially after the verdict went in favor of Grayscale Investment.
Her investment firm, 21Shares, is in line to seek approval from the Commission. The filing was submitted this Wednesday to make their first attempt at gaining a license to have a fund directly investing in ether.
Ether is the second-largest cryptocurrency when measured in market capitalization. Following this development, there has been a slight upward kick in its trading price. The token was last seen exchanging hands at $1,633.08, an increase of 0.06% in the last 24 hours. Interestingly, this is an increase of 4.55% in the last 6 months and a massive increase of 636.65% in the last 5 years.
While it cannot be clearly laid out that ARK Invest’s filing with the SEC is behind the rise, it can still be assumed that the token got a boost with this, displaying the futuristic scope for holders and non-holders. Cboe Global Markets had earlier filed an application with the SEC to seek approval for listing and trading shares of the Spot Bitcoin ETF. It was to go live on its native exchange platform; however, the decision never saw the end of the tunnel.
The decision is still pending with the Commission, with a chance that it could be rejected at any time. The SEC believes there is a potential crack in the ecosystem that exposes it to fraud and manipulation. Hence, funds invested by traders are vulnerable to theft. Also, there is little to no surveillance on the trading activities of the said financial product. This gives it an extra edge of vulnerability.
A verdict by the US District of Columbia Court of Appeals has made the crypto community happy. It has been cited as saying that the SEC was wrong in claiming that it was right in rejecting the application for an ETF that tracks the price of Bitcoin. It has been called a small defeat for the SEC. The Commission is taking its time to respond to the verdict; however, the crypto community has started to rejoice no matter what happens next.
Despite this verdict, the price of BTC is fluctuating near $25,727.50. This is a decline of 11.82% in the last 30 days from the time of drafting this article. It is, therefore, reasonable to infer that the latest update has affected the price of ether. Even if it has, it could be for a while before it goes back to the cave.
Source: https://www.cryptonewsz.com/ark-invest-seeks-sec-approval-for-the-us-spot-ether-etf/