Ark Investment Management, led by Cathie Wood, has opted out of the race to launch a spot ether exchange-traded fund (ETF). This decision has prompted the removal of Ark’s name from the application previously filed with 21Shares.
21Shares has responded by submitting an updated application for its Ethereum spot ETF, rebranding the fund as the 21Shares Core Ethereum ETF, following the conclusion of its partnership with Ark Invest on this particular ETF venture.
Despite no alterations to the fees outlined in the amended Form S-1, Ark Invest confirmed its decision to halt the development of an Ether ETF. While recognizing Ethereum’s potential and long-term value, a representative from Ark Invest cited the need to reassess the firm’s investment strategy as the rationale behind this move.
Notably, the termination of the Ether ETF pursuit does not impact the ongoing collaboration between 21Shares and ARK Invest on other initiatives, such as the ARK 21Shares Bitcoin ETF, which was launched in January.
Earlier this year, Ark and 21Shares joined forces to introduce one of the 11 spot-Bitcoin ETFs in the U.S. The $3.2 billion Ark 21Shares Bitcoin ETF (ARKB) currently holds the fourth position in assets, trailing BlackRock Inc.’s $19 billion iShares Bitcoin Trust (IBIT), which leads the category in terms of assets and inflows.
Under their partnership, 21Shares sponsored the ETF, with Delaware Trust Company serving as the trustee. The underlying Ether assets are securely held by Coinbase Custody Trust Company, while ARK Investment Management acted as a sub-adviser responsible for marketing the shares to investors.
Recently, the U.S. Securities and Exchange Commission (SEC) granted approval for 19b-4 forms for eight Ethereum ETFs. However, issuers still await the effectiveness of their S-1 statements before trading can commence.
In response to the SEC‘s approval, 21Shares expressed enthusiasm, affirming its commitment to expanding access to crypto as an asset class for U.S. investors.
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