This decision does not impact the ongoing collaboration between 21Shares and ARK Invest on other projects, such as the ARK 21Shares Bitcoin ETF launched in January.
21Shares has submitted an updated application for its Ethereum spot ETF, rebranding the fund from Ark 21Shares Ethereum ETF to 21Shares Core Ethereum ETF. ARK Invest has decided to end its partnership with 21Shares and will no longer be involved with the ETF.
According to the updated Form S-1, there are no changes to the fees. Despite recognizing Ethereum’s groundbreaking potential and long-term value, a representative from ARK Invest confirmed that the firm has chosen not to pursue an Ether ETF at this time, citing a need to reassess its investment strategy.
However, 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 served as a sub-adviser, responsible for marketing the shares to investors.
Beyond Bitcoin and Ethereum futures, the two companies 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.
ARK Invest and 21Shares had revised their spot Ether ETF proposal on May 10, deciding to drop plans to stake a portion of the fund’s assets through third-party providers.
Summary Review: While ARK Invest is stepping back from the Ether ETF, the ongoing partnership with 21Shares on other blockchain and cryptocurrency projects remains strong. Both companies continue to explore new opportunities and innovations in the digital asset space, offering investors diverse and comprehensive exposure to the evolving blockchain technology landscape.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
