The competition for the first spot Ethereum exchange-traded fund (ETF) in the United States has officially started, as two prominent fund managers have filed their applications with the U.S. Securities and Exchange Commission (SEC).

Ark 21Shares and VanEck, both well-known for their crypto-related investment products, have submitted their proposals for the ARK 21Shares Ethereum ETF and the VanEck Ethereum ETF, respectively. Both ETFs aim to track the performance of Ethereum by holding the second-largest cryptocurrency directly.

The filings were made through the Chicago Board Options Exchange (CBOE), which has also applied to list the ETFs on its BZX Exchange. The CBOE has previously filed for several Bitcoin spot ETFs, but none of them have been approved by the SEC so far.

The SEC has been reluctant to approve any spot crypto ETFs, citing concerns over market manipulation, investor protection, and regulatory clarity. However, the regulator has recently signaled its openness to approve Ethereum futures ETFs, which may pave the way for spot ETFs as well.

The filings by Ark 21Shares and VanEck are expected to trigger a series of similar applications by other fund managers in the coming days. The SEC will have to review the filings and make a decision within 240 days, with the possibility of extending the deadline for another 60 days.

If approved, the spot Ethereum ETFs would provide investors with a convenient and regulated way to gain exposure to Ethereum without having to buy or store the cryptocurrency themselves. The ETFs would also boost the liquidity and adoption of Ethereum, as well as its price.

The spot Ethereum ETF race in the U.S. follows the successful launch of several Ethereum ETFs in Canada, which have attracted significant inflows from investors. Canada has also approved several Bitcoin ETFs, while other countries such as Brazil and Germany have also introduced crypto ETFs.