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.
The newly amended Form S-1 indicates no updated fees.
Despite recognizing Ethereum’s groundbreaking potential and long-term value, an ARK Invest representative confirmed that the firm has decided not to proceed with an Ether ETF, citing a need to reassess its investment strategy.
This decision does not affect the ongoing collaboration between 21Shares and ARK Invest on other projects, such as the ARK 21Shares Bitcoin 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.
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According to 21Shares, this provides investors with what it describes as a “holistic exposure” to the growth of blockchain technology.
ARK Invest and 21Shares revised their spot Ether ETF proposal on May 10, dropping plans to stake a portion of the fund’s assets through third-party providers.
In their Feb. 7 filing, the companies 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 offer direct exposure to Ether and will be traded on the Cboe BZX Exchange, utilizing 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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