21Shares has filed an updated filing for its S-1 ETF, renaming the fund from the Ark 21Shares Ethereum ETF to the 21Shares Core Ethereum ETF. Additionally, ARK Invest has ended its partnership with 21Shares and will no longer participate in the ETF.
According to the newly amended Form S-1, there are no updated fees. Despite acknowledging Ethereum's groundbreaking potential and long-term value, a representative from ARK Invest confirmed that the company has decided not to move forward with an Ethereum (ETH) ETF, citing the need to reevaluate its investment strategy.
ARK 21Shares Partnership
However, this decision does not affect the ongoing cooperation between 21Shares and ARK Invest in other projects, such as the ARK 21Shares Bitcoin (BTC) ETF launched in January.
In its partnership, 21Shares sponsored the ETF, with a Delaware trust serving as trustee. The Coinbase Custody Trust securely holds the underlying Ethereum assets, while ARK Investment Management played a supporting role as a sub-adviser responsible for marketing the shares to investors.
Apart from Bitcoin and Ethereum futures, the duo has launched another product called ARK 21Shares Blockchain and Digital Economy Innovation ETF. This ETF is designed to invest in public stocks of companies operating in the blockchain industry.
According to 21Shares, this provides investors with what it describes as “comprehensive exposure” to the growth of blockchain technology.
Ark21 shares previous filings
ARK Invest and 21Shares revised their spot ETF proposal on May 10. They have dropped plans to share a portion of the fund's assets through external service providers.
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In its February 7 filing, the companies included a clause stating that 21Shares expects to receive ETH as a reward for staking and intends to classify the resulting profits as income generated by the fund.
In September 2023, ARK Invest and 21Shares filed for a spot ether ETF. The fund aims to offer direct exposure to Ethereum and will be traded on the Cboe BZX exchange, using the CME CF reference rate for Ethereum and the dollar – New York variant.
Last week, the US Securities and Exchange Commission approved Forms 19b-4 for eight Ethereum ETFs. Issuers still need their S-1 statements to become effective before trading can begin.
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