BTC in the lead, ETH in the wheel. In the race for ETFs, investment funds are fighting to see who will be the first to access the regulator’s precious key. BlackRock Or Grayscale are expected to take this first place on the Bitcoin (BTC). But other funds, like Ark Invest And 21Sharestry to anticipate the course of events by betting on his eternal second, theEther (ETH).
After the Bitcoin spot ETF, the Ethereum spot ETF
From the start launched by BlackRock last June, all American investment funds embarked on a frantic race toSpot Bitcoin ETF. They fight to get theSEC approval (Securities Exchange Commission). Of course, everyone wants to be first in order to attract capital first. In this fierce race, the yellow jersey is probably the giant BlackRock. The latter indeed has great influence with his $10 trillion assets under management.
The outcome could arrive within a few months, at the latest in March 2024. However, according to analysts, there would now be 75% chance of a bitcoin ETF being approved by the end of 2023. If the fight is not lost for the other funds, some are trying to take the lead, by focusing on the second crypto on the market in terms of capitalization: Ethereum.
Indeed, we learn, through a document submitted to the SEC, that the lines are also starting to move on the ETH side. Cathie Wood’s fund, Ark InvestAnd 21Shares have filed a request for ETH spot ETF, September 6. The fund would thus provide direct exposure to the price of Ether for traditional investors. One after another cryptos are entering the big leaguesafter having been denigrated for a very long time.
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Cryptos push the doors of traditional finance
This ETF called “ARK 21Shares Ethereum” would trade on the Chicago Stock Exchange, the Cboe BZX. The Delaware Trust company would act as fiduciary agent. The exchange Coinbase would ensure, as for spot Bitcoin ETFs, the function of filing and custody of the underlying in ETH. Furthermore, we also find in the loop the bank of new york mellon as administrator of funds and capital transfers.
Through the collaboration of these different actors, traditional investors will have the opportunity to gain exposure to the price of Ether, using the usual conventional vectors. They will not buy ETH directly, but shares of the trust which holds them.
“The sponsor [21Shares] believes that these actions [part du trust] were designed to provide investors with a cost-effective and convenient way to invest in Ether, without the need to purchase, hold and trade Ether directly. »
The approval of spot Bitcoin ETFs, and now Ethereum, in the USA is attracting all eyes. This is quite natural in the sense that it would sanction the definitive entry of bitcoin into the traditional market table. However, it might seem surprising that this event unleashes so much passion abroad. We know that a spot Bitcoin ETF, that of Jacobi Asset Managementhas already been approved incognito in Europe. But it also demonstrates theinfluence still predominant in american market on the rest of the world.
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