21Shares has filed an updated application for its Ethereum spot ETF S-1, rebranding the fund from Ark 21Shares Ethereum ETF to 21Shares Core Ethereum ETF. Additionally, ARK Invest has ended its partnership with 21Shares and will no longer be involved with the ETF.
According to the newly amended Form S-1, there are no updated fees. Despite acknowledging Ethereum’s groundbreaking potential and long-term value, a representative from ARK Invest confirmed that the firm has decided not to move forward with an Ether ETF at this time, citing a need to reassess its investment strategy
The ARK 21Shares partnership
However, this decision does not affect the ongoing collaboration between 21Shares and ARK Invest on other projects like the ARK 21Shares Bitcoin (BTC) ETF launched in January.
In their partnership, 21Shares sponsored the ETF, with Delaware Trust Company acting as the trustee. Coinbase Custody Trust Company securely holds the underlying Ether assets, while ARK Investment Management played a supporting role as a sub-adviser responsible for marketing the shares to investors.
Apart from Bitcoin and Ethereum futures, the duo launched another product called the ARK 21Shares Blockchain and Digital Economy Innovation ETF. This ETF is designed to invest in public equities of companies within the blockchain industry.
According to 21Shares, this provides investors with what it describes as a “holistic exposure” to the growth of blockchain technology.
Ark21 Shares former filings
ARK Invest and 21Shares revised their spot Ether exchange-traded fund proposal on Friday, May 10. They dropped plans to stake a portion of the fund’s assets through third-party providers.
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In their Feb. 7 filing, the companies had included a clause stating that 21Shares anticipated receiving ETH as a reward for staking and intended to classify the resulting earnings as income generated by the fund.
In September 2023, ARK Invest and 21Shares submitted an application for a spot Ether ETF. The fund aims to provide Ether direct exposure and trade on the Cboe BZX Exchange, which will utilize the CME CF Ether-Dollar Reference Rate—New York Variant.
Last week, the U.S. Securities and Exchange Commission approved 19b-4 forms for eight Ethereum ETFs. Issuers still need their S-1 statements to become effective before trading can begin.
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