ARK Invest and 21Shares submit two joint Ethereum futures ETF applications after SEC remission

• Cathie Wood's Ark Invest and 21Shares have submitted a joint application to the SEC for ETF consideration.
• Though joint, one will be just ETH futures, while the other will be both BTC and ETH futures.
• Experts say firms are using ETF for recognition as firms race for the repute of being crypto proponents.

Ark Invest and 21Shares have resolved to a double-chance bet, hoping to get a greenlight from the US Securities and Exchange Commission (SEC) this time. It comes after the financial regulator delayed a decision in their previous applications, days before doing the same for Grayscale Investment's application to have its GBTC converted to an Exchange Traded Fund (ETF).

Also Read: SEC delays decision on Grayscale's GBTC to ETF conversion after Ark Invest remission

Ark Invest, 21Shares opt for a double chance in ETF applications

Ark Invest is giving it a second go, this time standing side by side with 21Shares to submit two joint Ethereum futures ETF applications to the US SEC. The financial regulator had delayed a decision on the firm's spot BTC ETF application, which was due on August 13. September is the next date of interest where BlackRock, Bitwise, VanEck, WisdomTree, Invesco, Fidelity, and Valkyrie will be on the waitlist awaiting decisions for their own submissions. Global X will have to wait until October.

Meanwhile, Ark Invest has decided not to wait for its third deadline on November 11 and has instead teamed up for better odds. The partnership between Cathie Wood's investment management firm (Ark Invest) and the world's largest issuer of exchange-traded products (21Shares) is intended to increase their odds for approval and market themselves as firms offering exposure to cryptocurrency.

The two products submitted for consideration on August 24 are:

• ARK 21Shares Active Ethereum Futures ETF (ARKZ)
• ARK 21Shares Active Bitcoin Ethereum Strategy ETF (ARKY)

With more applications coming in, it is no longer surprising to see more issuers expressing interest to offer a crypto-based ETF. Meanwhile, investors have pegged their hope on this mania to provide impulse in the market, potentially driving Bitcoin price to the level above the psychological $30,000. If this happens, altcoins will follow easily.

James Seyffart, a renowned commentator on matters of crypto and an ETF research analyst for Bloomberg Intelligence, believes that ETFs have become the new way for institutional players to market themselves as firms offering cryptocurrency exposure.

Meanwhile, crypto market participants and issuers continue to wait on the SEC, which has shown that it is in no rush to approve ETF applications. The laxity has seen Europe beat the US after it premiered its first spot BTC ETF, steered by Jacobi Asset Management on the exchange Euronext Amsterdam.

Although issuers are not relenting, former SEC chair Jay Clayton articulated that efficacy was the main consideration for the SEC in determining whether to approve or reject an ETF. He said, "It would be difficult to deny approval of spot Bitcoin ETF if efficacy is demonstrated."

At the same time, John Reed Stark, a former official at the SEC, attributed the current stall in BTC spot ETF approvals to the current government regime. In his opinion, a Republican president taking office in the 2024 US Elections would bode well for the filings, giving a chance for a Republican to temporarily lead the SEC as chief commissioner. Stark's bet is on Hester Pierce, otherwise called the "crypto mom," considering she is the oldest serving commissioner in the five-person team of commissioners.

The current team of commissioners comprises current chair Gary Gensler (2021), Hester Pierce (2018), Caroline Crenshaw (2020), Mark Uyeda (2022), and Jaime Lizárraga (2022).

---