Key Points
21Shares has submitted an updated application for its Ethereum spot ETF S-1, giving it a new name – 21Shares Core Ethereum ETF.
ARK Invest, on the other hand, has decided to end its partnership with 21Shares, thereby withdrawing its involvement with the ETF.
The ARK 21Shares partnership
The newly amended Form S-1 does not show any changes to the fees.
Despite recognizing the revolutionary potential and long-term value of Ethereum, a spokesperson from ARK Invest confirmed that the firm has chosen not to proceed with an Ether ETF at this time.
The reason cited for this decision was a need to re-evaluate their investment strategy.
However, this decision does not affect the ongoing collaboration between 21Shares and ARK Invest on other projects, such as the ARK 21Shares Bitcoin (BTC) ETF that was launched in January.
As part of their partnership, 21Shares sponsored the ETF, with Delaware Trust Company acting as the trustee.
Coinbase Custody Trust Company securely holds the underlying Ether assets, while ARK Investment Management played a supportive role as a sub-adviser responsible for marketing the shares to investors.
In addition to Bitcoin and Ethereum futures, the duo launched another product called the ARK 21Shares Blockchain and Digital Economy Innovation ETF.
This ETF is designed to invest in public equities of companies within the blockchain industry.
According to 21Shares, this provides investors with what it describes as a “holistic exposure” to the growth of blockchain technology.
ARK Invest and 21Shares revised their spot Ether exchange-traded fund proposal on Friday, May 10.
They decided to abandon plans to stake a portion of the fund’s assets through third-party providers.
In their Feb. 7 filing, the firms had included a clause stating that 21Shares expected to receive ETH as a reward for staking and planned to classify the resulting earnings as income generated by the fund.
In September 2023, ARK Invest and 21Shares submitted an application for a spot Ether ETF.
The fund aims to provide Ether direct exposure and trade on the Cboe BZX Exchange, which will use the CME CF Ether-Dollar Reference Rate—New York Variant.
Last week, the U.S. Securities and Exchange Commission approved 19b-4 forms for eight Ethereum ETFs.
Issuers still need their S-1 statements to become effective before trading can begin.
