Ethereum

Core

21Shares has submitted a revised application for its Ethereum spot ETF S-1, renaming the fund from Ark 21Shares Ethereum ETF to 21Shares Core Ethereum ETF. Moreover, ARK Invest has ended its collaboration with 21Shares, and the former will no longer have any involvement with the ETF. 
Also Read: <a href="https://www.cryptopolitan.com/bearish-bitcoin-bullish-ethereum/">Bearish Bitcoin, Bullish Ethereum: Crypto Market Stands Split</a> 
The updated S-1 <a href="https://www.sec.gov/Archives/edgar/data/1992508/000121390024048513/ea0205580-03.htm#T32" rel="nofollow noopener" target="_blank">filing</a> states that there are no changes to the fees. Although ARK Invest recognizes Ethereum’s innovative potential and long-term value, a representative confirmed that the company has chosen not to proceed with an Ethereum ETF, as it needs to reevaluate its investment strategy. 
<h2 class="wp-block-heading" id="ark21-shares-ethereum-etf-turns-into-21shares-core-ethereum-etf">Ark21 Shares Ethereum ETF Turns Into 21Shares Core Ethereum ETF</h2> 
The rebranded 21Shares Core Ethereum ETF, referred to as the “Trust,” is an exchange-traded fund issuing shares that trade on the Cboe BZX Exchange. The ETF aims to track ETH’s performance using the CME CF Ether-Dollar Reference Rate â€” New York Variant as the benchmark, adjusted for expenses and other liabilities. 
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 Form S-1. Source: 21Shares
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The Index, managed by CF Benchmarks Ltd., reflects Ether’s performance in U.S. dollars. The ETF’s shares are valued daily based on this index. 21Shares US LLC sponsors the ETF, with CSC Delaware Trust Company as the trustee and Coinbase Custody Trust as the Ether custodian. 
According to the filing, investors will only handle cash during these transactions. They will not directly manage or interact with Ethereum. The Ether Counterparty, not the authorized participants, will manage the delivery of Ether to the ETF. This setup ensures a clear separation between the financial and operational aspects of the product’s management. 
<h2 class="wp-block-heading" id="ark-invest-will-not-pursue-ethereum-etf">ARK Invest Will Not Pursue Ethereum ETF</h2> 
In its official <a href="https://x.com/EricBalchunas/status/1796687707625935312" rel="nofollow" target="_blank">statement</a>, Ark Invest expressed pride in being part of the select group of Bitcoin ETF filings approved by the SEC in January. It reaffirmed its commitment to the ARK 21Shares Bitcoin ETF (“ARKB”), emphasizing its belief that Bitcoin is a public good that should be accessible to everyone at a low cost. 
Also Read: <a href="https://www.cryptopolitan.com/buterin-ethereum-not-switching-to-pos-early/">Vitalik Buterin Regrets Ethereum Not Switching to PoS Earlier</a> 
Regarding Ethereum, ARK Invest acknowledged its transformative potential and long-term value but stated that it will not pursue an Ethereum ETF now. Instead, it plans to continue exploring efficient ways to expose its investors to Ethereum’s innovative technology. 
<blockquote class="wp-block-quote has-text-align-center is-layout-flow wp-block-quote-is-layout-flow"> 
 As for Ethereum, ARK believes in its transformative potential and the long-term value of the Ethereum blockchain but, at this time, ARK will not be moving forward with an Ethereum ETF. <cite>Ark Invest</cite>
</blockquote> 
ARK Invest added that it would focus on products that leverage its strength in active management, including disruptive innovation equity ETFs, digital asset futures ETFs, the ARK Venture Fund, and other private funds. 
Cryptopolitan reporting by Jai Hamid

ARK Invest Backs Out of Spot Ethereum ETF With 21Shares

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