Revision of Ethereum ETF Application
21Shares has updated its Ethereum spot ETF application, changing its name from Ark 21Shares Ethereum ETF to 21Shares Core Ethereum ETF. Additionally, ARK Invest has decided to end its partnership with 21Shares regarding the ETF.
Strategic Reevaluation by ARK Invest
The revised Form S-1 indicates no alterations to the fee structure. While recognizing the substantial potential and enduring value of Ethereum, a representative from ARK Invest conveyed that the firm will not proceed with an Ethereum ETF due to a strategic reevaluation of its investment strategies.
Importantly, the termination of the collaboration does not impact the ongoing cooperation between 21Shares and ARK Invest in other initiatives, including the ARK 21Shares Bitcoin ETF launched earlier in the year.
Collaboration and Offerings
Previously, in their joint venture, 21Shares served as the ETF promoter, with Delaware Trust Company acting as the trustee. Coinbase Custody Trust Company managed the secure storage of the underlying Ether assets, while ARK Investment Management operated as a sub-adviser, concentrating on promoting the shares to investors.
Alongside Bitcoin and Ethereum futures, the collaboration introduced the ARK 21Shares Blockchain and Digital Economy Innovation ETF, designed to invest in public equities of companies in the blockchain industry.
As per 21Shares, this ETF offers investors extensive exposure to the advancements in blockchain technology.
Recent Events and Future Outlook
On May 10, amendments were made to the spot Ether ETF proposal by ARK Invest and 21Shares, including the elimination of plans to stake a portion of the fund's assets through third-party providers. Their initial filing on February 7 had mentioned 21Shares' intention to generate ETH from staking, with these rewards classified as fund-generated income.
In September 2023, ARK Invest and 21Shares submitted an application for a spot Ether ETF, intending to provide direct exposure to Ether and list the fund on the Cboe BZX Exchange, utilizing the CME CF Ether-Dollar Reference Rate – New York Variant.
Recently, the U.S. Securities and Exchange Commission approved 19b-4 forms for eight Ethereum ETFs. However, issuers must wait for their S-1 statements to take effect before trading commences. Speculations suggest that spot Ether exchange-traded funds (ETFs) might launch by late June, as indicated by some sources.
The culmination of the ARK Invest and 21Shares partnership regarding the Spot Ethereum ETF was reported on 'Latest News and Insights on Blockchain, Cryptocurrency, and Investing.'
