In a recent development, ARK Invest has terminated its collaboration with 21Shares on the Ether ETF project. This decision marks a significant shift in strategy for ARK Invest, which has decided not to proceed with an Ethereum-based exchange-traded fund. However, it’s crucial to note that this decision does not impact their ongoing partnership on other initiatives, such as the ARK 21Shares Bitcoin ETF launched earlier this year.
21Shares Rebrands Ethereum Spot ETF
Following the conclusion of its partnership with ARK Invest, 21Shares has rebranded its Ethereum spot ETF from Ark 21Shares Ethereum ETF to 21Shares Core Ethereum ETF. Despite this alteration, there have been no changes to the associated fees. The decision to rebrand comes alongside 21Shares’ updated application for the ETF, indicating a strategic shift in their approach to offering Ethereum investment vehicles.
Exploring the ARK 21Shares Partnership
In their collaborative efforts, 21Shares spearheaded the sponsorship of the ETF, with Delaware Trust Company serving as the trustee. The underlying Ether assets are securely held by Coinbase Custody Trust Company, while ARK Investment Management played a supportive role as a sub-adviser, primarily focusing on marketing the shares to potential investors.
Beyond Bitcoin and Ethereum futures, the partnership also introduced the ARK 21Shares Blockchain and Digital Economy Innovation ETF, aiming to provide investors with comprehensive exposure to the blockchain industry’s growth.
In the initial proposal revision on May 10, ARK Invest and 21Shares eliminated plans to stake a portion of the fund’s assets through third-party providers. This move diverged from their previous filing, where they intended to receive ETH rewards for staking.
Despite the regulatory hurdles, the recent approval of 19b-4 forms for eight Ethereum ETFs by the U.S. Securities and Exchange Commission signals progress in the Ethereum investment landscape, albeit with pending S-1 statement effectiveness for trading commencement.