$1.6 Trillion Asset Management Firm Enters the Spot Ethereum ETF Race!

  • According to an application made on Friday, a fund group managing approximately $1.6 trillion in assets is venturing into the crypto space.
  • Specifically, this ETF will directly hold Ethereum and differ from several Ethereum futures ETFs that are set to be introduced soon.
  • VanEck, which initiated the proposal for a spot Ethereum ETF in 2021, is awaiting approval from the U.S. Securities and Exchange Commission (SEC).

While the SEC continues to hold back spot Bitcoin ETFs, competition among firms for spot Ethereum ETFs is heating up.

Competition in Ethereum ETFs Following Bitcoin!

Ethereum-ETH

According to an application made on Friday, Invesco, a fund group managing approximately $1.6 trillion in assets, is making a move into the crypto space. The company recently announced its intention to launch the Invesco Galaxy Ethereum ETF. This strategic move includes Galaxy Digital Funds, which will manage and execute Ethereum sales. Notably, this ETF will directly hold Ethereum and differ from several Ethereum futures ETFs that are set to be introduced soon.

However, Invesco is just one among many competitors. Ark Invest and 21Shares revealed plans for spot Ethereum ETFs earlier this month. Additionally, VanEck, which initiated the proposal for a spot Ethereum ETF in 2021, is awaiting approval from the U.S. Securities and Exchange Commission. Another interesting proposal comes from Hashdex, aiming to create a mixed fund that includes both Ethereum futures and spot Ethereum positions.

What’s crucial is the timing of these proposals. Grayscale Investments recently celebrated a historic victory against the SEC. This decision, applauded by many crypto enthusiasts, could have accelerated the momentum for such spot Ethereum ETFs.

In addition, Invesco’s entry into the digital asset space has been in the works for a while. The partnership with Galaxy Digital in September 2021 aimed to create physically-backed crypto ETFs. This alliance promised to integrate institutional-level crypto management with global ETF expertise and might herald a new era for the crypto industry.

Regulatory Hurdles and the Future of Crypto ETFs

Furthermore, shortly after BlackRock made a foray into the crypto space, Invesco also submitted a proposal for a spot Bitcoin ETF. Interestingly, while many countries embrace spot crypto ETFs, the SEC continues to be cautious, delaying decisions like the Ark 21Shares Bitcoin ETF.

In conclusion, as the crypto landscape evolves, various fund groups are racing to launch different crypto products. Ark Invest’s aim, among others, is to lead the U.S. crypto ETF market with a comprehensive range of offerings and potentially revolutionize how traditional finance users access digital assets.

The next few months are poised to be critical for the U.S. crypto ETF market, as various major players vie for the top spot. Regulatory decisions and market developments will undoubtedly shape the future of crypto investments.

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