21Shares Rebrands Ethereum Spot ETF; ARK Invest Ends Partnership
Summary:
21Shares has rebranded its proposed Ethereum spot ETF as the 21Shares Core Ethereum ETF in an updated Securities and Exchange Commission (SEC) filing. The company's previous partner, ARK Invest, has terminated its involvement in the ETF due to a strategy reassessment. Despite the split, 21Shares and ARK Invest will continue their partnership on other projects, including the jointly launched Bitcoin ETF. Besides the Bitcoin and Ethereum futures, they also introduced an ETF investing in public companies in the blockchain sector. ARK Invest and 21Shares had previously proposed staking some of the fund's assets via third parties but dropped the plan. The SEC, lately, has approved 19b-4 forms for eight Ethereum ETFs, although the issuers must wait for their S-1 statements to become effective before trading commences.
Updating its Securities and Exchange Commission (SEC) filing, 21Shares has rebranded its proposed Ethereum spot ETF replacing the name Ark 21Shares Ethereum ETF with the 21Shares Core Ethereum ETF. ARK Invest, originally partnered with 21Shares for the ETF, has since cut ties and will have no further involvement.
The freshly revised Form S-1 unveiled no changes to the fee structure. Although ARK Invest, despite recognizing Ethereum's transformative potential and sustainability, has officially announced its decision not to continue with Ethereum ETF at present. The decision was derived based on the need to reevaluate their investment approach.
This decision does not impinge upon 21Shares and ARK Invest's ongoing joint effort on other initiatives such as ARK 21Shares Bitcoin (BTC) ETF that debuted in January.
The partnership saw 21Shares sponsoring the ETF, with the Delaware Trust Company functioning as custodian. Coinbase Custody Trust Company safely handles the underlying Ether assets, while ARK Investment Management served an auxiliary role as a sub-advisor to market the shares to investors.
Beyond Bitcoin and Ethereum futures, the partners also launched ARK 21Shares Blockchain and Digital Economy Innovation ETF. According to 21Shares, this ETF aims to invest in equities of publicly traded blockchain industry firms, affording investors a "comprehensive exposure" to the growth trajectory of blockchain technology.
Both ARK Invest and 21Shares redrafted their spot Ether ETF proposal on Friday, May 10 and pulled back from their design to stake some of the fund's assets via third parties.
In a filing made on 7th February, it was spelled out that 21Shares anticipated Ethereum rewards from staking, planning to consider these earnings as fund-generated income.
In 2023, an application for a spot Ether ETF was lodged by ARK Invest and 21Shares, aiming to provide investors with direct exposure to Ethereum, set to be traded on the Cboe BZX Exchange employing the CME CF Ether-Dollar Reference Rate—New York Variant.
Most recently, the SEC greenlit 19b-4 forms for eight Ethereum ETFs. However, issuance is pending until their S-1 statements become effective, thus allowing the commencement of trading.
Published At
6/1/2024 11:01:58 AM
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