Ark Invest Exits Ether ETF Race, 21Shares Rebrands Fund

Cathie Wood’s Ark Investment Management has withdrawn from the initiative to launch a spot ether exchange-traded fund (ETF). The firm’s name has been removed from the application filed in conjunction with 21Shares.

21Shares has refiled its application for the Ethereum spot ETF, rebranding the fund from Ark 21Shares Ethereum ETF to 21Shares Core Ethereum ETF.

Ark Invest has also ended its partnership with 21Shares concerning this specific ETF.

The updated Form S-1 indicates that there are no changes to the fund’s fees. A representative from Ark Invest, while acknowledging Ethereum’s potential and long-term value, confirmed that the firm decided not to pursue an Ether ETF at this time, citing the need to reassess its investment strategy.

This decision does not impact other ongoing collaborations between 21Shares and Ark Invest, including the ARK 21Shares Bitcoin ETF launched in January. Earlier this year, Ark and 21Shares collaborated to introduce one of the 11 spot-Bitcoin ETFs available in the U.S. The $3.2 billion ARK 21Shares Bitcoin ETF (ARKB) ranks fourth in assets, trailing behind BlackRock Inc.’s $19 billion iShares Bitcoin Trust (IBIT), which leads the category.

In this partnership, 21Shares acts as the ETF sponsor, with Delaware Trust Company serving as the trustee. Coinbase Custody Trust Company securely holds the underlying Ether assets, while ARK Investment Management has functioned as a sub-adviser responsible for marketing the shares to investors.

Last week, the U.S. Securities and Exchange Commission (SEC) approved 19b-4 forms for eight Ethereum ETFs. However, issuers still need their S-1 statements to become effective before trading can begin.

“We are enthusiastic about the SEC’s recent 19b-4 approval and are committed to increasing access to crypto as an asset class for U.S. investors,” 21Shares said in a statement.

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