ARK Invest And 21Shares: ARK Invest terminates collaboration with 21Shares on ETH ETF filing

ARK Invest And 21Shares: ARK Invest discontinues partnership with 21Shares in ETH ETF application

Crypto News– 21Shares has submitted an updated application for its Ethereum spot ETF S-1, renaming the fund from Ark 21Shares Ethereum ETF to 21Shares Core Ethereum ETF. Concurrently, ARK Invest has terminated its partnership with 21Shares and will no longer be associated with the ETF.

According to the recently revised Form S-1, there are no changes to the fees. Despite recognizing Ethereum’s revolutionary potential and enduring value, a representative from ARK Invest confirmed that the firm has opted not to proceed with an Ether ETF, citing the necessity to reassess its investment strategy.

The collaboration between ARK and 21Shares

In addition to Bitcoin and Ethereum futures, the pair introduced another product known as the ARK 21Shares Blockchain and Digital Economy Innovation ETF. This ETF aims to invest in publicly traded equities of companies operating within the blockchain industry.

Previous submissions by Ark21Shares

On May 10, ARK Invest and 21Shares revised their proposal for a spot Ether ETF, opting out of plans to stake a portion of the fund’s assets via third-party providers. Previously, in their Feb. 7 filing, the companies had outlined intentions to receive ETH rewards for staking and intended to classify these earnings as income generated by the fund.

In September 2023, ARK Invest and 21Shares jointly submitted an application for a spot Ether ETF. This fund aims to provide direct exposure to Ether and will be traded 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. However, issuers still require effective S-1 statements before trading can commence.

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