The ongoing cooperation between 21Shares and ARK Invest on other initiatives, including as the January-launched ARK 21Shares Bitcoin ETF, is unaffected by this decision. The fund was renamed from Ark 21Shares Ethereum ETF to 21Shares Core Ethereum ETF when 21Shares submitted an amended application for their Ethereum spot ETF S-1.
Furthermore, ARK Invest will no longer be associated with the ETF and has terminated its collaboration with 21Shares. The most recent version of Form S-1 indicates that there are no new fees.
A spokesman from ARK Invest revealed that the company has chosen against moving forward with an Ether ETF, citing a need to reevaluate its investing strategy, despite appreciating Ethereum’s revolutionary potential and long-term worth. The continued cooperation between 21Shares and ARK Invest on other initiatives, such the January-released ARK 21Shares Bitcoin ETF, is unaffected by this decision, though. 21Shares sponsored the ETF through their partnership, while Delaware Trust Company served as the trustee.
The underlying Ether assets are held in safe custody by Coinbase Custody Trust Company, with ARK Investment Management serving as a sub-adviser and selling the shares to investors.
The pair also introduced the ARK 21Shares Blockchain and Digital Economy Innovation ETF in addition to Bitcoin and Ethereum futures. The purpose of this exchange-traded fund (ETF) is to invest in publicly traded stocks of blockchain startups. This gives investors what 21Shares refers to as a “holistic exposure” to the development of blockchain technology. On May 10, ARK Invest and 21Shares updated their proposal for a spot Ether ETF.
They abandoned their plans to use third-party suppliers to stake a portion of the fund’s assets. The companies filed on February 7th, and in that statement, they stated that 21Shares planned to count the revenues as income earned by the fund and that they expected to get ETH as a reward for staking.
ARK Invest and 21Shares filed a request for a spot Ether ETF in September 2023. Using the CME CF Ether-Dollar Reference Rate – New York Variant, the fund will be traded on the Cboe BZX Exchange with the objective of providing direct exposure to ether.
The U.S. Securities and Exchange Commission authorised eight Ethereum ETFs’ 19b-4 forms last week. Before trading may start, issuers must still wait for their S-1 statements to become effective.