June 21, 2024
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Crypto

ARK Invest Opts Out of Ethereum Spot ETF, Explores Alternative Paths: Report

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Ethereum spot exchange-traded funds (ETFs) have seen several developments this week following the listing approval on May 23. The most notable is that Cathie Wood's ARK Invest suspended its Ethereum spot ETF plans. An ARK spokesperson stated in an email that she would look for better opportunities for investors.

“At this time, ARK will not be moving forward with an Ethereum ETF,” the spokesperson. fixed. “We will continue to evaluate efficient ways to provide our investors with exposure to this innovative technology in a way that unlocks its full benefits.”

The comments follow 21Shares' updated S-1 form for its Ethereum product, which no longer names ARK Invest as an ETF partner. The proposed ETF was also changed from Ark “21Shares Ethereum ETF” to “21Shares Core Ethereum ETF.”

ARK Invest cooperated with 21Shares in seeking regulatory approval to launch a Bitcoin spot fund. The two asset management companies expanded their partnership and requested Ethereum ETF spot offering in September of last year. At the time, the SEC's decision on spot Bitcoin ETFs was still on hold.

After gaining SEC approval in January, its spot Bitcoin ETF, ARK 21Shares Bitcoin ETF (ARKB), debuted trading on the CBOE on January 11. As of May 31, ARKB maintains around $3.2 billion in Bitcoin (BTC).

While Ark is shelving its Ethereum ETF plans for now, the company affirms its continued commitment to its Bitcoin ETF.

“21Shares and ARK remain committed partners on the 21Shares ARK Bitcoin ETF, which launched in January, as well as our existing line of futures products,” 21Shares confirmed in a statement.

Ethereum ETF Spot Filings: Weekly Summary

This week's highlight is updated S-1 forms from ETF issuers. At the time of this publication, all eight issuers had submitted their required filings to the SEC.

VanEck's S-1 amendment was filed on approval day. BlackRock did the same with an updated presentation earlier this week. Other issuers also submitted their amended filings on Friday, the due date. place by the SEC.

Hashdex's Proposed Ethereum ETF Was retired on May 24, a day after the SEC gave the green light to the other eight funds except Hashdex. Hashdex was also the only issuer without an amended 19b-4 filing prior to the Ethereum ETF decision.

Fidelity is the only issuer to disclose its management fee in its updated filing. Is the planned rate 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 reviews of the S-1 documents.

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