Ark Invest withdraws from the competition for Ether ETF, 21Shares
Cathie Wood’s Ark Investment Management has decided to withdraw from the competition to launch a spot ether exchange-traded fund (ETF). The company’s name has been removed from the application filed with 21Shares, and the fund has been rebranded as the 21Shares Core Ethereum ETF. Additionally, Ark Invest has ended its partnership with 21Shares regarding this ETF. The amended Form S-1 shows no changes to the fees. While Ark Invest recognizes the potential and long-term value of Ethereum, a representative confirmed that the firm has decided not to proceed with an Ether ETF in order to reassess its investment strategy. However, this decision does not impact the collaboration between 21Shares and ARK Invest on other projects, including the ARK 21Shares Bitcoin ETF. Earlier this year, Ark and 21Shares partnered to launch one of the spot-Bitcoin ETFs in the U.S. The $3.2 billion Ark 21Shares Bitcoin ETF ranks fourth in assets. In their partnership, 21Shares sponsored the ETF, with Delaware Trust Company acting as the trustee and Coinbase Custody Trust Company holding the underlying Ether assets. ARK Investment Management served as a sub-adviser responsible for marketing the shares to investors. The U.S. Securities and Exchange Commission recently approved 19b-4 forms for eight Ethereum ETFs, and issuers are now waiting for their S-1 statements to become effective before trading can begin. 21Shares expressed enthusiasm about the SEC’s approval and stated its commitment to increasing access to crypto as an asset class for U.S. investors.
