Strategic Changes in Ethereum ETF Landscape

21Shares has updated its S-1 application for the Ethereum spot exchange-traded fund (ETF), renaming it as the 21Shares Core Ethereum ETF from the previous Ark 21Shares Ethereum ETF. This modification coincides with the termination of the partnership between 21Shares and ARK Invest, signifying a shift in strategies for both entities.

Conclusion of ARK Invest Partnership

As per the revised Form S-1 filing, there have been no alterations to the ETF's associated fees. Despite the potential and enduring value of Ethereum, a representative from ARK Invest affirmed the decision to refrain from launching an Ether ETF presently. This choice underscores ARK Invest's reassessment of its investment approach, illustrating the fluidity of the cryptocurrency investment landscape.

The conclusion of the partnership primarily impacts the Ether ETF but does not disrupt the continuing collaboration between 21Shares and ARK Invest on other endeavors.

Progress in BTC ETF

Remarkably, the collaboration between the two organizations persists in the ARK 21Shares Bitcoin ETF project, inaugurated in January. This ETF serves as a noteworthy venture, showcasing the successful synergy between 21Shares and ARK Invest.

In their mutual efforts, 21Shares facilitated the ETF, with Delaware Trust Company assuming the role of trustee. The Ether assets underpinning the ETF were securely managed by Coinbase Custody Trust Company, while ARK Investment Management contributed in a supportive capacity as a sub-adviser, focusing on share marketing to potential investors.

Emergence of Blockchain and Digital Economy Innovation ETF

In addition to their Bitcoin and Ethereum futures initiatives, the collaborative duo introduced a novel product—the ARK 21Shares Blockchain and Digital Economy Innovation ETF. This ETF targets investments in public equities of blockchain industry companies, providing investors with comprehensive exposure to blockchain technology's growth.

This offering stands as a testament to the collective prowess of 21Shares and ARK Invest, even as their trajectories diverge concerning the Ether ETF.

Noteworthy Filings

Previously, on May 10, ARK Invest and 21Shares amended their spot Ether ETF proposal by abandoning plans to stake a section of the fund's assets through third-party providers. The filing from February 7 included a provision envisioning ETH rewards for staking, classifying the ensuing earnings as fund-generated income.

In September 2023, ARK Invest and 21Shares submitted an application for a spot Ether ETF to provide direct Ether exposure and trade on the Cboe BZX Exchange. The exchange relies on the CME CF Ether-Dollar Reference Rate—New York Variant, aligning with industry standards for trading and valuation.

For further details, refer to the original article by The Coin Rise.