Two popular companies in the exchange-traded funds (ETFs) sector, VanEck and ARK Invest, demonstrate that the old adage 'when one door closes, another opens' may hold true in the cryptocurrency market. After unsuccessfully attempting to create a spot Bitcoin (BTC) ETF, companies have decided to try their luck with another instrument. They both chose Ethereum (ETH), the second-largest crypto asset by market capitalization.

The Race for the First Spot ETH ETF in the USA Has Begun

On 6 September, the Chicago Board Options Exchange (CBOE) filed two applications with the Securities and Exchange Commission (SEC) to create VanEck Ethereum ETF and ARK 21Shares Ethereum Ethereum Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Ethereum is an open source, blockchain-based distributed computing platform and operating system featuring smart contract functionality. Created in 2014, Ethereum now stands as the second largest cryptocurrency by market cap at the time of writing.As a decentralized cryptocurrency network and software platform, Ethereum represents the most prominent altcoin. Ethereum also enables the creation Distributed Applications, or dapps. Understanding EthereumEthereum boasts its own programming language, Read this Term ETF, which would be listed on the CBOE's BZX exchange.

According to an analyst at Bloomberg, James Seyffart, who specializes in the ETF market, this officially kicks off the race to establish the first spot Ethereum ETF in the United States. Seyffart predicts that these applications should be decided by May 2024.

BOOM: 19b-4 filing from @vaneck_us AND @ARKInvest/@21co__ for spot Ethereum ETFs.

This is different from the earlier Ark/21shares S-1 filing because this will ultimately start that clock we are so used to following with spot Bitcoin filings. pic.twitter.com/qP7nydc33w

— James Seyffart (@JSeyff) September 6, 2023

He also speculates when Grayscale, another major player that previously applied for a similar Bitcoin instrument, will join the race.

How long before we see a 19b-4 from @Grayscale to convert $ETHE into an ETF? https://t.co/078sm9FNlF pic.twitter.com/pzSEcMrtZB

— James Seyffart (@JSeyff) September 6, 2023

SEC Delays Decision-Making

The move toward Ethereum comes shortly after the SEC once again delayed its decision to create spot Bitcoin ETFs. Companies like WisdomTree, Valkyrie, and Invesco were expecting a final answer from the SEC in early September, but the agency has decided to give itself until mid-October.

JUST IN: SEC is opting to delay (as expected) on spot bitcoin ETF deadlines pic.twitter.com/W4JjOji6L2

— Eric Balchunas (@EricBalchunas) August 31, 2023

Two days before the SEC's announcement, a federal appeals court ruled that the agency had wrongly denied another investment firm, Grayscale Investments, the opportunity to create a spot Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term ETF. The D.C. Circuit Court of Appeals has ordered the SEC to reevaluate Grayscale's application. While the regulatory body reviews the court's decision, there is no guarantee that its final verdict will favor Grayscale.

This has dampened the euphoria that emerged in the cryptocurrency market in June when BlackRock, the largest asset manager, filed an application to create a Bitcoin ETF. Experts speculated that when such a major player wants to enter the market, it would only be a matter of time until the SEC makes the decision to accept the application. However, these forecasts have proven to be far from the truth.

Currently, the only crypto ETFs available on the American market are those tracking the price of Bitcoin futures. For years, the SEC has claimed that it cannot accept instruments based on spot prices due to the volatile nature of the market, unclear regulations, and difficulties in determining the base price on a decentralized market.