ARK Invest ends partnership with 21Shares on Ether ETF

The ongoing partnership between 21Shares and ARK Invest on other initiatives is unaffected by this decision. The fund renamed from Ark 21Shares Ethereum ETF to 21Shares Core Ethereum ETF when 21Shares submitted an amended application for their Ethereum spot ETF S-1. Furthermore, ARK Invest will no longer associated with the ETF and has terminated its collaboration with 21Shares. The most recent version of Form S-1 indicates that there are no new fees. A spokesman from ARK Invest revealed that the company has chosen against moving forward with an Ether ETF, citing a need to reevaluate its investing strategy, despite appreciating Ethereum’s revolutionary potential and long-term worth.

ARK & 21Shares Collaboration: Expanding Blockchain Investment Opportunities

This decision does not affect the ongoing partnership between 21Shares and ARK Invest on other initiatives, such as the ARK 21Shares Bitcoin ETF released in January.21Shares sponsored the ETF through their partnership, while Delaware Trust Company served as the trustee. Coinbase Custody Trust Company holds the underlying Ether assets in safe custody, while ARK Investment Management serves as a sub-adviser and sells the shares to investors. The pair also introduced the ARK 21Shares Blockchain and Digital Economy Innovation ETF in addition to Bitcoin and Ethereum futures. The purpose of this exchange-traded fund (ETF) is to invest in publicly traded stocks of blockchain startups.
This gives investors what 21Shares calls a “holistic exposure” to the development of blockchain technology.

On May 10, both companies updated their proposal for a spot in Ether ETF. They abandoned their plans to use third-party suppliers to stake a portion of the fund’s assets. The companies filed on February 7th, and in that statement, they stated that 21Shares planned to count the revenues as income earned by the fund and that they expected to get ETH as a reward for staking.
ARK Invest and 21Shares submitted applications to join the Ether ETF in September 2023. Using the CME CF Ether-Dollar Reference Rate. the fund will traded on the Cboe BZX Exchange to provide a direct effect to ether.
The U.S. Securities and Exchange Commission authorized eight Ethereum ETFs’ 19b-4 forms last week.