Rex Shares and Osprey apply for MOVE ETF approval with the launch of the Ethereum Layer-2 mainnet.

Rex Shares and Osprey Apply for Move ETF Approval with the Launch of the Ethereum Layer 2 Mainnet

Rex Shares and Osprey Funds have filed applications with the US Securities and Exchange Commission (SEC) to launch a new exchange-traded fund (ETF) called ‘Move’. This fund focuses on companies in the Ethereum ecosystem, particularly those benefiting from the launch of the Ethereum Layer 2 mainnet.

The Ethereum Layer 2 mainnet is expected to significantly increase scalability and reduce transaction costs on the Ethereum network, paving the way for greater adoption of Ethereum-based solutions.

Move ETF Aims to Capture Ethereum Ecosystem’s Growth

The planned Move ETF is intended to invest in companies involved with Ethereum and its Layer 2 solutions, aiming to tap into the projected growth of the Ethereum ecosystem. The launch of the Ethereum Layer 2 mainnet is anticipated to drive increased demand for Ethereum-based applications and services.

Rex Shares and Osprey are betting that the Move ETF will appeal to investors looking for exposure to the growing Ethereum ecosystem. This development aligns with the ongoing trend of institutional investors showing increased interest in cryptocurrency and blockchain technologies.

SEC Approval Needed

The SEC must approve the Move ETF application before the fund can be launched. The timeline for approval is currently unclear, but such processes usually take several months. Nonetheless, Rex Shares and Osprey are optimistic about their chances, given the growing interest in cryptocurrency investment products.

If approved, the Move ETF would add another investment vehicle for those wishing to gain exposure to the Ethereum ecosystem. This follows a series of successful ETF launches focusing on Bitcoin and other cryptocurrencies, further indicating mainstream acceptance of digital currencies.

Ethereum Layer 2 Launch

The launch of the Ethereum Layer 2 mainnet represents a major milestone for the Ethereum network. Layer 2 solutions have been in development for years and are designed to increase scalability and reduce transaction fees, aiming to solve some of the network’s current limitations.

This upgrade is particularly significant for decentralized finance (DeFi) applications, which have experienced tremendous growth on the Ethereum network but have been limited by high gas fees and slow transaction speeds. With Layer 2, Ethereum expects to accommodate even greater levels of DeFi activity.

Ethereum’s Layer 2 is not just important for DeFi; it’s expected to impact the entire ecosystem, from NFTs to supply chain management, as these solutions enable faster and cheaper transactions.