The previous Ark 21Shares Ethereum ETF will become the 21Shares Core Ethereum ETF, according to a newly filed revised S-1 registration statement. This means that ARK Invest will abandon its partnership with 21Shares to launch an Ethereum spot ETF. A spokesperson for 21Shares confirmed the change to the media, saying:
“Per details of the filing, Ark Investments will not serve as a partner in the ETF. We are excited about the SEC’s recent 19b-4 approval and are committed to increasing access to cryptocurrencies as an asset class for U.S. investors.”
However, the spokesperson added that 21Shares and Ark Investments will continue to collaborate on the ARK 21Shares Bitcoin ETF launched in January, as well as other existing futures products.
On the other hand, a spokesperson for Ark Investment said:
"We will not continue to cooperate to launch an Ethereum ETF", but we are still committed to the ARK 21Shares Bitcoin ETF. As for Ethereum, Ark Investments believes in its transformative potential and the long-term value of the Ethereum blockchain. But for now, ARK will not be moving forward with an Ethereum ETF. We will continue to evaluate effective ways to provide our investors with access to this innovative technology to unlock its full benefits. "
Regarding Ark Investment’s decision to abandon the Ethereum spot ETF, some people in the community believe that the reason may be that they are not optimistic about the approval of the Ethereum spot ETF, or are not optimistic about the market appeal of Ethereum. But Bloomberg analyst Eric Balchunas believes that the more likely reason is that the potential fee income under the separation of the two companies is too low. In addition, ARK’s core business is originally an actively managed company, and 21Shares has also expanded its brand in the United States, so there is no need for the two parties to cooperate in the issuance of Ethereum ETFs.
Yes. Plus at its core ARK is an active shop. Also 21Shares has developed its brand in US now. I think that’s really it.
— Eric Balchunas (@EricBalchunas) June 1, 2024
This article Ark Investment abandons cooperation with 21Shares to issue Ethereum spot ETF, what are the reasons behind it? First appeared in Zombit.