Cathie Wood's Ark Investment Management has withdrawn from the race to launch an Ethereum spot trading fund (ETF), with its name removed from the application submitted to 21Shares.
21Shares has filed an updated filing for its ETF, rebranding the fund from the 21Shares Ark Ethereum ETF to the 21Shares Core Ethereum ETF.
Ark Invest has also terminated its partnership with 21Shares regarding this ETF.
the an average Form S-1 does not show any changes in fees. Although Ethereum's potential and long-term value are acknowledged, a representative from Ark Invest said Certain The company decided not to move forward with the ETF, citing the need to reevaluate its investment strategy.
This decision does not affect the ongoing cooperation between 21Shares and ARK Invest in other projects, such as the ARK 21Shares Bitcoin ETF launched in January.
Earlier this year, Ark and 21Shares teamed up to launch one of 11 spot bitcoin ETFs in the US. The $3.2 billion Ark 21Shares Bitcoin ETF (ARKB) ranks fourth in terms of assets, behind BlackRock Inc.'s iShares Bitcoin Trust (IBIT). Which is worth $19 billion. Which leads the category in terms of assets and inflows.
In its partnership, 21Shares sponsored the ETF, with a Delaware trust serving as trustee.
Coinbase Custody Trust Company securely held the underlying Ethereum assets, while ARK Investment Management served as a sub-adviser responsible for marketing the shares to investors.
Last week, the US Securities and Exchange Commission (SEC) approved Forms 19b-4 for eight Ethereum ETFs. Issuers still need their S-1 statements to become effective before trading can begin.
“We are excited about the recent SEC approval of 19b-4 and are committed to increasing access to cryptocurrencies as an asset class for US investors,” 21Shares said in a statement.