ARK Invest Drops Partnership with 21Shares for Proposed Ethereum Fund
Cathie Wood’s Ark Investment Management has withdrawn its involvement in the race to launch an exchange-traded fund (ETF) that would directly invest in Ether, the second-largest cryptocurrency.
The amended prospectus document, known as Form S-1, filed with the US Securities and Exchange Commission (SEC) on Friday, revealed that Ark’s name was removed from the application for the spot-Ether ETF that it had filed in partnership with 21Shares.
Consequently, the fund’s name was changed from Ark 21Shares Ethereum ETF to 21Shares Core Ethereum ETF.
The move comes after Ark joined forces with 21Shares as one of the successful issuers that launched spot-Bitcoin ETFs earlier this year.
Despite the withdrawal from the Ethereum ETF, Ark remains committed to its Bitcoin ETF, the $3.2 billion ARK 21Shares Bitcoin ETF (ticker ARKB), which currently holds the fourth position in terms of assets among Bitcoin ETFs.
The unexpected approval by the SEC of the 19b-4 filings made by exchanges operated by Cboe Global Markets Inc., Nasdaq, and the New York Stock Exchange to list spot-Ether ETFs created anticipation in the market.
However, issuers still await the regulator’s approval of their S-1 statements before trading can commence.
In response to the recent developments, 21Shares expressed enthusiasm about the SEC’s approval and reaffirmed their commitment to increasing access to cryptocurrencies as an asset class for US investors.
They also highlighted their continued partnership with Ark on the ARK 21Shares Bitcoin ETF, which was launched in January, as well as their existing lineup of futures products.
Several other issuers, including Franklin Templeton, Fidelity Investments, VanEck, and Invesco Ltd., have filed revised S-1 statements, signaling
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