Overview

• 21Shares has rebranded its Ethereum spot ETF to 21Shares Core Ethereum ETF as per an updated application.

• ARK Invest has terminated its collaboration with 21Shares regarding the ETF.

Changes in Partnership

The revised S-1 application for the Ethereum spot ETF by 21Shares, now known as 21Shares Core Ethereum ETF, does not reflect alterations in the fee structure.

Despite acknowledging the potential and enduring value of Ethereum, ARK Invest has opted not to proceed with an Ether ETF for the time being.

The decision to discontinue this initiative stemmed from a necessity to reassess their investment tactics.

Nevertheless, this resolution does not impact the continued partnership between 21Shares and ARK Invest on various ventures, including the ARK 21Shares Bitcoin ETF introduced earlier this year.

In their collaborative efforts, 21Shares sponsored the ETF, with Delaware Trust Company serving as the trustee.

The custody of the underlying Ether assets is maintained by Coinbase Custody Trust Company, while ARK Investment Management assumed the role of a supportive sub-adviser in charge of promoting the shares to potential investors.

Alongside Bitcoin and Ethereum futures, the duo also launched the ARK 21Shares Blockchain and Digital Economy Innovation ETF.

This ETF is structured to invest in publicly traded companies within the blockchain sector, offering investors comprehensive exposure to the advancement of blockchain technology.

Notably, ARK Invest and 21Shares revised their proposal for the spot Ether exchange-traded fund in a recent update, choosing to forgo plans involving third-party providers in staking a segment of the fund’s assets.

An earlier filing on Feb. 7 included provisions where 21Shares anticipated receiving ETH rewards for staking, intending to classify the resultant earnings as part of the fund's generated income.

In September 2023, ARK Invest and 21Shares jointly submitted an application for a spot Ether ETF designed to provide direct Ether exposure and trade 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, awaiting the effectiveness of S-1 statements before trading commences.