Cathie Woods’ Ark Invest Withdraws Spot Ethereum ETF Application
Highlights
- Amid ARK Invest's withdrawal, 21Shares will continue with the Ethereum ETF on its own.
- No fees have been listed in the new S-1 filings, indicating a pause in the expected fee competition.
- Despite the filings, it may take several weeks before the new financial products begin trading.
While most of the applicants for the spot Ethereum ETF have revised their S-1 filings, Cathie Wood’s Ark Invest has taken a step back with a decision to withdraw the application. As a result, it has withdrawn its partnership with 21Shares.
21Shares To Go Solo with Ethereum ETF
ARK Invest has announced that it will not be launching an Ethereum ETF at this time. However, the firm remains committed to exploring ways to provide investors with exposure to Ethereum’s underlying technology.
ARK emphasizes its focus on leveraging its expertise in active management through a range of investment products. These include disruptive innovation equity ETFs, digital asset futures ETFs, and the ARK Venture Fund.
Notably, ARK is among the few companies that received approval from the SEC to launch a Bitcoin ETF in January. The firm is dedicated to its ARK 21Shares Bitcoin ETF (ARKB), underscoring its belief in making Bitcoin accessible to everyone at a low cost.
In a recent update, Bloomberg analyst Eric Balchunas revealed that 21Shares will now proceed with the Ethereum ETF independently. ARK Invest has been removed from the associated documentation and the ETF’s name. Despite this change, ARK and 21Shares continue to collaborate on Bitcoin and futures ETFs.
Additionally, Balchunas noted that there are no fees listed in any of the new S-1 filings, indicating that the anticipated fee war is currently on hold.
21Shares is doing the Ethereum ETF solo now, ARK has been dropped from the document and name, but they still remain partners on the Bitcoin and futures’ ETFs. Also no fees in any of the new S-1s. Fee war on hold for now. https://t.co/e7RHiuwITw
— Eric Balchunas (@EricBalchunas) May 31, 2024
Last Minute Filing of S-1 Forms
The U.S. SEC has directed issuers of prospective spot Ethereum ETFs to submit their amended S-1 forms by Friday. In the last-minute rush, Franklin Templeton submitted its S-1 filing on Friday. Despite this, it could take several weeks for these forms to become effective and for the new financial products to start trading.
Following the initial approval of spot Ethereum ETF applications last week, VanEck promptly submitted an amended S-1 form. On Thursday, BlackRock followed suit, filing an updated form that revealed its ETF would be seeded with $10 million.
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