Ethereum

Spot

21Shares has revised its application for an Ethereum spot ETF, renaming it from Ark 21Shares Ethereum ETF to<a href="https://x.com/JSeyff/status/1796646394238804279" rel="noopener noreferrer nofollow"> 21Shares Core Ethereum ETF</a>. Furthermore, ARK Invest has decided to terminate its collaboration with 21Shares, stepping away from involvement with the ETF.
<h2 id="b-strategic-reassessment-by-ark-invest-b">Strategic Reassessment by ARK Invest</h2>
The<a href="https://www.sec.gov/Archives/edgar/data/1992508/000121390024048513/ea0205580-03.htm" rel="noopener noreferrer nofollow"> updated Form S-1</a> indicates no changes to the fee structure. Despite acknowledging Ethereum’s significant potential and long-term value, a representative from ARK Invest stated that <a href="https://thecoinrise.com/franklin-templeton-fires-first-shot-in-ether-etf-fee-war/" rel="noopener noreferrer nofollow">the firm will not move forward with an Ethereum ETF</a>. The representative cited a strategic reassessment of its investment plans.
Notably, the dissolution decision does not affect the continued cooperation between 21Shares and ARK Invest on other ventures, such as the ARK 21Shares Bitcoin ETF launched earlier this year.
<h2 id="b-collaboration-and-product-offerings-b">Collaboration and Product Offerings</h2>
Previously, in their partnership, 21Shares was the promoter of the ETF, with Delaware Trust Company acting as the trustee. Coinbase Custody Trust Company managed the secure holding of the underlying Ether assets, while ARK Investment Management functioned as a sub-adviser, focusing on marketing the shares to investors.
In addition to Bitcoin and Ethereum futures, the partnership also introduced the ARK 21Shares Blockchain and Digital Economy Innovation ETF, designed to invest in public equities of companies within the blockchain sector.
According to 21Shares, this ETF offers investors comprehensive exposure to the growth of blockchain technology.
<h2 id="b-recent-developments-and-future-prospects-b">Recent Developments and Future Prospects</h2>
On May 10, ARK Invest and 21Shares modified their spot Ether ETF proposal,<a href="https://thecoinrise.com/ethereum-etf-proposal-ark-and-21shares-abandon-staking-plans/" rel="noopener noreferrer nofollow"> eliminating plans to stake a portion of the fund’s assets through third-party providers</a>. Their February 7 filing had mentioned that 21Shares expected to earn ETH from staking, intending to classify these rewards as fund-generated income.
In September 2023, ARK Invest and 21Shares filed an application for a spot Ether ETF, aiming to provide direct exposure to Ether and list the fund 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 begin. There are predictions from some quarters that the spot Ether exchange-traded funds (ETFs) could<a href="https://thecoinrise.com/spot-ether-etfs-could-launch-by-late-june-as-blackrock-updates-key-filing/" rel="noopener noreferrer nofollow"> launch by late June.</a>
The post <a href="https://thecoinrise.com/ark-invest-and-21shares-dissolves-spot-ethereum-etf-partnership/" rel="noopener noreferrer nofollow">ARK Invest and 21Shares Dissolves Spot Ethereum ETF Partnership</a> appeared first on <a href="https://thecoinrise.com" rel="noopener noreferrer nofollow">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

ARK Invest and 21Shares Dissolves Spot Ethereum ETF Partnership

Table of Contents

TheCoinrise Media

Other articles published on Jun 1, 2024

Major Crypto Exchanges Withdraw from Hong Kong Over Regulatory Hurdles

Polygon Boosts Ethereum Transaction Speed

Ripple CEO Calls Out Biden’s Crypto Veto

Bitcoin Investors Are Diversifying with These Altcoins

Analyst REVEALS Top 10 Altcoins You Kneed to Know for the Next Bull Run

Galxe Empowers Web3 Communities with Innovative Tools

Join our free newsletter for daily crypto updates!