Cathie Wood’s Ark Investment Management has withdrawn from the Ethereum spot ETF competition. This was revealed in a revised prospectus (S-1) submitted to the United States Securities and Exchange Commission on Friday evening.
Ark’s name was also deleted from the Ethereum spot ETF application, which was submitted in cooperation with 21Shares. The fund’s name was changed from Ark 21Shares Ethereum ETF to 21Shares Core Ethereum ETF.
Eric Balchunas Insights
According to a recent update from Bloomberg analyst Eric Balchunas, 21Shares will now independently proceed with the Ethereum ETF. ARK Invest has been deleted from the accompanying paperwork and the ETF’s name. Despite this move, ARK and 21Shares continue to work together on Bitcoin and futures ETFs.
Furthermore, Balchunas pointed out that no fees are stated in new S-1 filings, implying that the anticipated fee war is temporarily paused.
21Shares Move Alone with Ethereum ETF
ARK Invest will not establish an Ethereum ETF, but will continue investigating methods to expose investors to Ethereum’s technology. The business emphasizes active management through various investment products, including disruptive innovation stock ETFs, digital asset futures ETFs, and the ARK Venture Fund.
Ark Invest Adjusts Portfolio, Sells $6.4 Million in Coinbase Shares
ARK is one of the few businesses permitted by the SEC to launch a Bitcoin ETF in January. With its ARK 21Shares Bitcoin ETF (ARKB), ARK intends to make Bitcoin available to anyone at a reasonable cost.
Partnership with Ark 21shares
21Shares and ARK Invest continue collaborating on initiatives such as the ARK 21Shares Bitcoin ETF, launched in January. The ETF was sponsored by 21Shares, with the trustee being Delaware Trust Company and the underlying Ether assets held by Coinbase Custody Trust Company. ARK Investment Management assisted in the marketing of the shares.
Aside from Bitcoin and Ethereum futures, the team also developed the ARK 21Shares Blockchain and Digital Economy Innovation ETF. This ETF is meant to invest in public stocks of blockchain-related firms.
21Shares Recent Amendment
On May 10, ARK Invest and 21Shares amended their proposed spot Ether ETFs. They abandoned plans to stake some of the fund’s assets with third-party suppliers
