The excitement surrounding the approval of the Spot Ether exchange-traded fund (ETF) appears to be less fervent than the approval of the Bitcoin ETF. This difference in enthusiasm is evident in the recent decision made by Cathie Wood's Ark Investment Management. The firm has chosen to step back from the competition to introduce an ETH ETF.

Ark's Withdrawal

Recent reports indicate that this decision was formalized through an amended prospectus document submitted to the US Securities and Exchange Commission (SEC). The updated document now designates 21Shares as the sole sponsor of the proposed fund. Originally named Ark 21Shares Ethereum ETF, it has been revised to 21Shares Core Ethereum ETF.

According to reports, an Ark spokesperson confirmed that the firm will not pursue the ETH ETF. Nevertheless, Ark expressed its commitment to exploring avenues to offer investors exposure to Ether.

In a declared statement, ARK expressed pride in being part of the select group of Bitcoin ETF filings approved by the SEC in January. Despite this, the firm remains dedicated to the ARK 21Shares Bitcoin ETF CARKB, emphasizing the belief that BTC is a public good accessible to all at a minimal cost.

Decision Rationale

ARK's stance on Ethereum highlights its confidence in the transformative potential and enduring value of the Ethereum blockchain. While recognizing Ethereum's significance, the firm has decided not to proceed with an Ether ETF at this juncture. ARK vows to continue evaluating efficient methods to provide investors exposure to this innovative technology to maximize its advantages.

Moreover, ARK emphasizes its focus on product offerings aligning with its core competency in active management. These include disruptive innovation equity ETFs, digital asset futures ETFs, the ARK Venture Fund, and other private funds.

The decision to forego the Ether ETF by Ark, despite its successful collaboration with 21Shares in launching a Bitcoin ETF, is noteworthy. The fund presently manages $3.2 billion in assets, ranking fourth among similar funds. The leading position is secured by BlackRock Inc.'s iShares Bitcoin Trust (IBIT), boasting $19 billion in assets.

In the past month, Ethereum prices have surged by 30% amid anticipation of the ETF launch. At present, ETH is traded at an average price of $3,782.