ARK Invest Ends ETH ETF Partnership with 21Shares

21Shares has recently updated its application for an Ethereum spot ETF, referring to the fund now as the 21Shares Core Ethereum ETF instead of the Ark 21Shares Ethereum ETF. This change follows ARK Invest’s decision to end its collaboration with 21Shares on this specific fund. The amended Form S-1 for the fund shows no changes in the fees associated with it. Although ARK Invest acknowledges the revolutionary potential and long-term value of Ethereum, a firm representative revealed that ARK has chosen not to proceed with an Ether ETF at this time. Instead, the firm will take a step back to reassess its investment strategy.

This decision to part ways on the Ethereum ETF does not affect the ongoing partnership between ARK Invest and 21Shares on other initiatives. For instance, in January, they launched the ARK 21Shares Bitcoin ETF. Within this collaboration, 21Shares took on the sponsorship role, while the Delaware Trust Company served as the trustee. Security of the underlying Ether assets is managed by Coinbase Custody Trust Company, and ARK Investment Management was involved in marketing the shares to potential investors.

Besides their ventures into Bitcoin and Ethereum ETFs, the partnership has also led to the creation of the ARK 21Shares Blockchain and Digital Economy Innovation ETF. This particular ETF is intended to invest in publicly traded companies that operate within the blockchain sector. According to 21Shares, this initiative aims to offer investors comprehensive exposure to the evolving blockchain technology landscape.

Earlier this year, ARK Invest and 21Shares had revised their spot Ether exchange-traded fund proposal, initially submitted in February. They eliminated the provision to stake a portion of the fund’s assets through third-party providers. The original filing had included a statement that 21Shares expected to earn ETH rewards from staking, which they planned to report as income generated by the fund. This plan was dropped in the updated proposal submitted on May 10.

In September 2023, ARK Invest and 21Shares filed an application for a spot Ether ETF. The purpose of this fund is to offer direct exposure to Ether and enable trading on the Cboe BZX Exchange. The ETF will utilize the CME CF Ether-Dollar Reference Rateβ€”New York Variant for its pricing mechanism. Despite recent progress, ARK’s recent decision signifies a strategic shift regarding the Ether ETF.

The collaboration between ARK Invest and 21Shares still flourishes on multiple projects although they pulled back from the Ethereum ETF. They continue to explore new opportunities in the cryptocurrency and blockchain sectors, reaffirming their commitment to innovate within these evolving markets. The success of prior endeavors, such as the Bitcoin ETF, showcases the potential for future collaborations.

In the broader market, the U.S. Securities and Exchange Commission recently approved 19b-4 forms for eight Ethereum ETFs. These issuers will still need their S-1 statements to become effective before they can commence trading. This regulatory approval indicates a positive trend towards the acceptance of Ethereum ETFs, signaling potential growth and investor interest in this area.

As the crypto and blockchain spaces keep expanding, both 21Shares and ARK Invest remain pivotal players, contributing to the sector’s evolution through their innovative products and strategic decisions. While they might diverge on specific projects, the core mission of advancing blockchain technology continues to bind their collaborative efforts.

35 thoughts on “ARK Invest Ends ETH ETF Partnership with 21Shares

  1. So excited about the potential growth in Ethereum ETFs. The SEC approval is a huge step forward!

  2. Absolutely thrilled with the updates from 21Shares. Their focus on core Ethereum is commendable.

  3. Changing names but keeping the same fees? This feels like a marketing gimmick. πŸ˜’

  4. The ARK 21Shares Bitcoin ETF was a hit, so I have high hopes for all their future ventures!

  5. ARK and 21Shares are such strong teams in this space. Their innovation is driving the market forward.

  6. Really interesting developments! It’s important for ARK to reassess strategies. Excited to see their next moves!

  7. This partnership keeps on delivering promising prospects. The blockchain sector is lucky to have such dedicated players! 🌐πŸ’ͺ

  8. The future is looking bright for blockchain technology! Can’t wait to see what ARK and 21Shares do next.

  9. This back-and-forth with ARK and 21Shares is exhausting. Just pick a strategy and stick with it already. 😩

  10. Fantastic to see the focus on innovation and strategic reassessment. The crypto market needs such thoughtful advances!

  11. Wow, the digital economy is thriving! The ARK 21Shares Blockchain and Digital Economy Innovation ETF sounds like a great investment opportunity. πŸ”₯πŸ“ˆ

  12. Why are they abandoning the Ethereum ETF now when they were so supportive before? Doesn’t make sense. 😀

  13. Ethereum’s potential keeps growing, and 21Shares is at the forefront of it. Kudos to them!

  14. The rebrand and strategic shift are actually exciting. Adaptation is key in the fast-evolving crypto world!

  15. Major props to 21Shares for staying committed to Ethereum! Looking forward to the new ETF and its potential impact.

  16. ARK Invest stepping back from the Ether ETF feels like a lack of confidence. Not very reassuring for investors.

  17. Loving the proactive approach by ARK and 21Shares. Blockchain ETFs offer great exposure for investors.

  18. This rebrand to 21Shares Core Ethereum ETF seems like a smart move. Looking forward to what the future holds!

  19. Great to see that despite the changes, their collaboration is still thriving. The future looks bright for blockchain investments. 🌐✨

  20. The constant updates and changes are making it hard to trust 21Shares and ARK. Stability, anyone? πŸ™„

  21. Kudos to 21Shares for their consistent vision and commitment to Ethereum. Exciting times ahead!

  22. Renaming the ETF won’t fix the underlying issues. Need more transparency and better decisions. 🚫

  23. Seems like a mess. Do we really need another name change without any substantial updates? πŸ˜–

  24. ARK’s indecisiveness on the Ether ETF is a red flag for me. Are they even sure about what they’re doing?

  25. Disappointed that ARK Invest is reassessing their strategy now. Makes me question their commitment to innovation.

  26. ARK Invest and 21Shares are truly pioneers in this space. The decision might pivot, but it also shows strategic thinking. Keep up the great work!

  27. This split is confusing. Why bother changing the name if everything remains the same?

  28. The new name doesnt change the fact that ARK bailed on the Ethereum ETF. Whats going on behind the scenes?

  29. I’m loving the innovation from 21Shares and ARK Invest! Even though theyre parting ways on the Ether ETF, the partnership still has so much potential.

  30. ARK and 21Shares are fueled by innovation! Even if they’re stepping back from the Ether ETF, their collaboration is still a strong force in crypto!

  31. This updated application shows 21Shares’ dedication. Excited to see what new opportunities they will explore!

  32. Another name change but no real changes? Typical corporate maneuver to distract us from their shaky plans.

  33. Why would they rename it and make no changes? Seems kind of pointless.

  34. ARK reassessing their strategy feels like a cop-out. Commitment issues much?

  35. This strategic shift by ARK makes sense. It’s important to reassess and refine investment strategies. Looks like they’re staying ahead of the game!

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