The partnership between 21Shares and ARK Invest, which includes the January-launched ARK 21Shares Bitcoin ETF, will continue unabated notwithstanding this decision.
With the renaming from Ark 21Shares Ethereum ETF to 21Shares Core Ethereum ETF, 21Shares has submitted an amended application for its Ethereum spot ETF S-1. Also, ARK Invest is pulling out of the ETF after ending its collaboration with 21Shares.
There have been no changes to the fees, per the revised Form S-1. A spokesperson from ARK Invest revealed that the business has opted not to proceed with an Ether ETF. They cited a need to reevaluate their investing approach, even though they acknowledged Ethereum’s pioneering potential and long-term worth.
Nevertheless, the present choice will not impact the continuing partnership between ARK Invest and 21Shares on other endeavors, such the January-launched ARK 21Shares Bitcoin ETF.
21Shares was the ETF sponsor and Delaware Trust Company was the trustee as part of their cooperation. Coinbase Custody Trust Company is in charge of storing the Ether assets, and ARK Investment Management was involved in the marketing of the shares to investors as a sub-advisor.
In addition to futures on Bitcoin and Ethereum, the partners also introduced an exchange-traded fund (ETF) named ARK 21Shares Blockchain and Digital Economy Innovation. Companies operating in the blockchain field are the target of this exchange-traded fund.
What 21Shares calls a “holistic exposure” to blockchain’s potential development is what this gives investors.
May 10 saw revisions to the spot Ethereum ETF proposal from ARK Invest and 21Shares. They scrapped their intention to use third-party suppliers to stake some of the fund’s assets.
A provision in the firms’ filing from February 7th said that 21Shares planned to record the revenues from staking Ethereum as income for the fund and that the company expected receiving ETH as a reward.
21Shares and ARK Invest applied for a spot Ethereum ETF in September 2023. To that end, the fund will use the CME CF Ether-Dollar Reference Rate – New York Variant and list on the Cboe BZX Exchange in an effort to provide direct exposure to Ether.
Eight Ethereum ETFs had their 19b-4 forms authorized by the US Securities and Exchange Commission last week. Before issuers may start trading, their S-1 statements must become effective.
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