21Shares has recently submitted an updated application for its Ethereum spot ETF S-1. As part of the rebranding process, the fund has been renamed from Ark 21Shares Ethereum ETF to 21Shares Core Ethereum ETF. In addition, 21Shares has ended its partnership with ARK Invest, meaning that the latter will no longer be involved in the ETF.
The amended Form S-1 does not include any changes to the fees. Although ARK Invest recognizes the immense potential and long-term value of Ethereum, a representative from the firm has confirmed that they have decided not to proceed with an Ether (ETH) ETF. This decision has been made in order to reassess their investment strategy.
However, it’s important to note that this decision does not impact the ongoing collaboration between 21Shares and ARK Invest on other projects. For instance, they continue to work together on the ARK 21Shares Bitcoin (BTC) ETF, which was launched in January. In this partnership, 21Shares sponsored 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 has played a supporting role as a sub-adviser responsible for marketing the shares to investors.
Alongside Bitcoin and Ethereum futures, the two companies have also introduced the ARK 21Shares Blockchain and Digital Economy Innovation ETF. This particular ETF is designed to invest in public equities of companies operating within the blockchain industry. According to 21Shares, this offers investors a comprehensive exposure to the growth of blockchain technology.
Previously, ARK Invest and 21Shares revised their spot Ether ETF proposal on May 10. As part of the revision, they decided to no longer stake a portion of the fund’s assets through third-party providers. In their initial filing on February 7, they had included a clause stating that 21Shares expected to receive ETH as a reward for staking and intended to classify the resulting earnings as income generated by the fund.
Back in September 2023, ARK Invest and 21Shares submitted an application for a spot Ether ETF. The objective of this fund is to provide direct exposure to Ether and it will be traded on the Cboe BZX Exchange, utilizing the CME CF Ether-Dollar Reference Rate – New York Variant. While the U.S. Securities and Exchange Commission has recently approved 19b-4 forms for eight Ethereum ETFs, the issuers still need their S-1 statements to become effective before trading can commence.
Magazine: Crypto voters are already disrupting the 2024 election — and it’s set to continue