The enthusiasm around Spot Ether exchange-traded fund (ETF) approval seems to be a bit lower than compared to Bitcoin ETF approval. This can be seen in the decision taken by Cathie Wood’s Ark Investment Management. They have opted to withdraw from the race to launch an ETH ETF.
ARK withdraws
Reports reflect that the decision was made through an amended prospectus document filed with the US Securities and Exchange Commission (SEC). It now lists only 21Shares as the sponsor of the proposed fund. The ETF was originally named Ark 21Shares Ethereum ETF but now it has been renamed to 21Shares Core Ethereum ETF only.
A report mentioned that an Ark spokesperson had confirmed that the firm will not be moving ahead with an ETH ETF. However, they stated that the firm will continue to explore ways to provide their investors with exposure to Ether.
ARK in a reported statement stated that it remains proud to be a part of the select group of Bitcoin ETF filings approved by the SEC in January. However, they will remain fully committed to the ARK 21Shares Bitcoin ETF CARKB, as they believe BTC is a public good that everyone should be able to access at a low cost.
Why did it so?
On talking about Ethereum it stated that it believes in its transformative potential and the long-term value of the Ethereum blockchain. Meanwhile, at this time, ARK will not be moving forward with an Ether ETF. The firm had promised to continue evaluating efficient ways to provide our investors with exposure to this innovative technology in a way that unlocks its full benefits.
It added that ARK continues to focus on products that leverage our core strength of active management. Among them are our disruptive innovation equity ETFs, digital asset futures ETFs, the ARK Venture Fund, and other private funds.
This is important to note that the decision comes despite Ark’s previous success in partnering with 21Shares to launch a spot Bitcoin ETF. The fund currently holds $3.2 billion in assets and ranks fourth among its peers. The top spot is held by BlackRock Inc.’s iShares Bitcoin Trust (IBIT), with $19 billion in assets.
Ethereum price had surged by 30% in the last 30 days over the hype of ETF launch. ETH is trading at an average price of $3,782, at the press time.