21Shares has submitted an updated application for its Ethereum spot ETF S-1, rebranding it as the 21Shares Core Ethereum ETF. In addition, ARK Invest has ended its partnership with 21Shares and will no longer be involved with the ETF.
The amended Form S-1 does not include any changes to the fees. Despite recognizing the groundbreaking potential and long-term value of Ethereum, ARK Invest has decided not to proceed with an Ethereum (ETH) ETF, citing the need to reassess its investment strategy.
However, this decision does not impact the ongoing collaboration between 21Shares and ARK Invest on other projects, such as the ARK 21Shares Bitcoin (BTC) ETF launched in January. In this partnership, 21Shares sponsored the ETF, with Delaware Trust Company acting as the trustee. The underlying Ether assets are securely held by Coinbase Custody Trust Company, while ARK Investment Management played a supporting role as a sub-adviser responsible for marketing the shares to investors.
In addition to Bitcoin and Ethereum futures, the duo also launched the ARK 21Shares Blockchain and Digital Economy Innovation ETF, which is designed to invest in public equities of companies within the blockchain industry. This provides investors with a comprehensive exposure to the growth of blockchain technology.
On May 10, ARK Invest and 21Shares revised their spot Ether ETF proposal, eliminating plans to stake a portion of the fund’s assets through third-party providers. In their previous filing on February 7, they had included a clause stating that 21Shares expected to receive ETH as a reward for staking and intended to classify the resulting earnings as income generated by the fund.
In September 2023, ARK Invest and 21Shares submitted an application for a spot Ether ETF. The fund aims to offer 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 need their S-1 statements to become effective before trading can commence.