Ethereum
ARK Invest withdraws from Ethereum spot ETF, explores alternative paths: report
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Spot Ethereum exchange-traded funds (ETFs) saw several developments this week after the listing was approved on May 23. Most notable is that Cathie Wood’s ARK Invest has suspended its plans for a spot Ethereum ETF. An ARK spokesperson said in an email that it would seek better opportunities for investors.
“At this time, ARK will not move forward with an Ethereum ETF,” spokesperson declared. “We will continue to evaluate effective ways to provide our investors with exposure to this innovative technology in a way that realizes its full benefits.”
The comments follow 21Shares’ updated Form S-1 for its Ethereum product, which no longer names ARK Invest as a partner in the ETF. The proposed ETF has also been changed from Ark “21Shares Ethereum ETF” to “21Shares Core Ethereum ETF”.
ARK Invest has cooperated with 21Shares to obtain regulatory approval to launch a Bitcoin spot fund. The two management companies have expanded their partnership by applying to Ethereum ETF spot offer in September last year. At the time, the SEC’s decision regarding spot Bitcoin ETFs was still pending.
After gaining SEC approval in January, their spot Bitcoin ETF, ARK 21Shares Bitcoin ETF (ARKB), debuted on the CBOE on January 11. As of May 31, ARKB held approximately $3.2 billion in Bitcoin (BTC).
While Ark is abandoning its Ethereum ETF plans for the time being, the company affirms its continued commitment to its Bitcoin ETF.
“21Shares and ARK remain committed partners on the ARK 21Shares Bitcoin ETF, launched in January, as well as our existing suite of futures products,” 21Shares confirmed in a statement.
Ethereum ETF Spot Deposits: Weekly Summary
This week’s highlight is ETF issuers’ updated S-1 forms. As of press time, all eight issuers have submitted the required documents to the SEC.
VanEck’s amendment S-1 was tabled on approval day. BlackRock followed suit with an updated filing earlier this week. Other issuers also sent their amended documents by the Friday deadline. together by the SEC.
The Ethereum ETF offered by Hashdex was took of on May 24, a day after the SEC gave the green light to the other eight funds except Hashdex. Hashdex was also the only amended 19b-4 non-custodial issuer prior to the Ethereum ETF decision.
Fidelity is the only issuer to disclose its management fees in its updated filing. It is the expected fee is 0.19%.
The next step involves the SEC reviewing and providing comments on the filings. According to a source with knowledge of the situation, this process could involve at least two additional rounds of revisions to the S-1 documents.
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