Cathie Wood’s Ark Invest Pushing for Spot Ethereum ETF: A Game Changer?

BingX
5 min readSep 23, 2023

As an active participant in the crypto industry, we are in the season of the ETFs. Even some people who aren’t crypto enthusiasts have become more aware of the massive waves the speculation of an ETF approval is making in the United States.

In the heat of all these speculations comes Cathie Wood’s Ark Invest with a new twist. As a foremost investor and believer in crypto, they had initially filed for a Bitcoin ETF. They went for the jugular right now by signifying their interest in filing for the first spot Ether ETF application.

This is indeed great news for the crypto industry. In this article, you will get complete details regarding the new spot Ethereum ETF application by Ark Invest and what it means for the crypto industry.

What is a Spot Ethereum ETF?

Generally, exchange-traded funds (ETFs) are financial products, assets, and tools that allow a traditional stock market trader to gain exposure to the crypto market. In other words, an ETF allows stock traders to have a feel of trading crypto-related products in the market. There are two types of ETFs: spot and futures ETFs. In this case, we are discussing the spot ETF.

A spot ETF gives you a direct feeling of trading a crypto asset as a stock market trader. So, in the case of the Ethereum ETF, this type of ETF allows you to trade Ethereum directly in real-time. There are no substitutes as Ethereum price changes and fluctuations happen in real-time. The only thing you want to experience as a stock trader buying and selling these types of ETFs is that there’s no need for a crypto wallet.

Cathie Wood’s Active Stance in the Crypto Industry

Cathie Wood is the famous CEO of the investment company Ark Invest. One of the most significant components of interest in Cathie Wood is her active support for the crypto industry. She is one of those big company CEOs who admits Bitcoin is part of the future of the financial sector.

However, the new stance isn’t only on admitting the innovative potential of the crypto industry. She is actively involved in several movements that uplift the crypto industry. Some are investing to support crypto firms, participating in crypto conferences, and her recent quest for crypto ETFs. Cathie Wood’s Ark Invest have a massive stake in crypto firms like Coinbase, and she is currently seeking the approval of Ark Invest’s spot Ethereum ETF.

During the Bitcoin 2022 conference in Miami, Cathie Wood spoke on what she believes in crypto. She says crypto will be a tough match for the traditional finance system. “They’re losing talent to crypto, so they’re having to raise wages to attract talent, and they’re losing business to DeFi. Lending and saving — a lot of it is taking place in DeFi right now,” she said at the conference.

Cathie Wood’s Ark Invest, 21Shares Apply for First Spot Ethereum ETF

Ark Invest is truly going for the first spot in Ethereum ETF in the United States after filing with the Securities and Exchange Commission. As said before, if approved, this type of ETF will allow you to trade Ethereum from stock exchanges in real-time. It was filed on the 6th of September, 2023 and is called the ARK 21Shares Ethereum ETF — it bears this name because it was filed in collaboration with 21Shares.

This is huge for the Ethereum network and the whole crypto industry. Recently, the industry has seen an influx of spot ETFs due to their colossal significance and impact. In their application, Ark Invest and 21Shares specified Coinbase as the custodian of this ETF. This statement means that Coinbase will hold onto the Ether, backing the shares of Ark Invest’s ETF.

Furthermore, this ETF will be traded on the Cboe BZX Exchange. Ark Invest chose this exchange because they can obtain information about activity in the CME’s Ethereum futures market. This was a point the SEC raised that led to the striking out of their previous ETF applications.

This is not the first time Ark Invest will make a spot ETF application to the Securities and Exchange Commission. They first made their first spot Bitcoin ETF application in 2021. However, it was rejected by the SEC. Now, they are back with the Spot Ethereum ETF, a considerable promise for the Ethereum network.

But how exactly will this impact the Ethereum ecosystem?

How Ark Invest Spot ETF Application Will Affect Ethereum Network

Coinmarketcap

It is one thing to make an ETF application to the SEC and another for the US regulator to review and approve such an application. Cathie Wood’s Ark Invest just applied for a spot in Ethereum ETF. It may be approved, and also it might be rejected.

Assuming the SEC approves this spot Ethereum ETF from Ark Invest, it will significantly impact the Ethereum network. But How?

The first impact of approving a spot Ethereum ETF is that it will open up the Ethereum token and its network to a broader audience. This is not when the Ethereum network was limited to the crypto ecosystem. Approving this ETF from Ark Invest means that you can stay in a stock exchange and trade the ETF in real-time. You won’t be the only one trading this ETF. Many investors will also be excited to jump in and trade the spot Ethereum ETF.

Secondly, this is an avenue to make a profit. Within the first few weeks, when the SEC approves the spot Ethereum ETF, there are massive chances that the price of Ethereum tokens will increase to new levels. So, being one of the first investors in this ETF means profit. However, the price increase or decrease won’t be limited to the first few weeks. Volatility is an intrinsic characteristic of cryptocurrencies, and Ethereum isn’t exempted.

What Next?

Cathie Wood is one of the most outspoken CEOs in the financial space with a huge interest in the crypto industry. Her firm, Ark Invest, recently filed for a spot in Ethereum ETF from the Securities and Exchange Commission. The ETF will allow stock traders to buy and sell Ethereum shares in real time if approved.

The impact of this spot Ethereum ETF will be massive, assuming the SEC approves of it. It will give more non-crypto enthusiasts exposure to some crypto-financial assets. Of course, this would increase the chances of portfolio diversification for investors and an excellent opportunity to increase the price of Ethereum (ETH) tokens.

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