ARK Invest has officially submitted its application for an Ethereum Spot ETF to the Securities and Exchange Commission (SEC).
This move marks another significant step towards expanding the range of cryptocurrency exchange-traded funds (ETFs) available to investors.
ARK Invest, known for its innovation in the investment industry, has teamed up with 21Shares, a prominent ETF provider, to bring the Ethereum Spot ETF to the market.
This ETF, named the ARK 21Shares Ethereum ETF, is designed to closely mirror the performance of Ethereum (ETH), the native digital currency of the Ethereum blockchain.
The ETF will achieve this by tracking ETH’s performance against the CME CF Ether-Dollar Reference Rate – New York Variant.
This particular index effectively consolidates trading data from major ETH spot exchanges, providing a comprehensive measure of the cryptocurrency’s market performance.
The sub-advisor for this groundbreaking ETF will be none other than ARK Invest itself, a company renowned for its active approach to research and investment strategies.
Their involvement is expected to play a pivotal role in marketing the ETF’s shares to potential investors.
Traders and investors looking to gain exposure to Ethereum through this ETF will find it listed on the Cboe BZX Exchange, identifiable by the trading symbol ARKE.
As for the cost of investing in the ARK 21Shares Ethereum ETF, the annual expense ratio is set at 0.95%. This fee is intended to cover the trust’s various operational expenses and obligations.
It’s important to note that this ETF will focus exclusively on Ethereum and will not involve investments in derivatives or any other non-ETH financial instruments.