Ark Investment Management Withdraws Involvement in Ether ETF Launch
Ark Investment Management, led by Cathie Wood, has decided to withdraw its participation in launching an exchange-traded fund (ETF) focusing on Ether, the second-largest cryptocurrency. The amended prospectus document submitted to the US Securities and Exchange Commission revealed that Ark’s name was eliminated from the application for the spot-Ether ETF that was initially filed in collaboration with 21Shares. As a result of this change, the fund’s name was altered from Ark 21Shares Ethereum ETF to 21Shares Core Ethereum ETF.
Ark’s Continued Focus on Bitcoin Fund
While Ark has withdrawn from the Ethereum ETF project, the company remains dedicated to its Bitcoin ETF. The ARK 21Shares Bitcoin ETF (ticker ARKB), with assets totaling $3.2 billion, holds the fourth position concerning assets among Bitcoin ETFs. This decision comes after Ark successfully partnered with 21Shares on the launch of spot-Bitcoin ETFs earlier this year. Despite the setback with the Ethereum ETF, Ark continues to prioritize advancing its Bitcoin investment products.
SEC’s Approval of Spot-Ether ETF Filings
The SEC recently approved 19b-4 filings submitted by exchanges operated by Cboe Global Markets Inc., Nasdaq, and the New York Stock Exchange to list spot-Ether ETFs. This unexpected approval generated anticipation within the market, although issuers are awaiting the regulator’s approval of their S-1 statements before trading can begin. In response to the positive developments, 21Shares expressed excitement about gaining SEC approval and reconfirmed their commitment to expanding cryptocurrency accessibility for US investors.
- SEveral other issuers, including Franklin Templeton, Fidelity Investments, VanEck, and Invesco Ltd., have updated their S-1 statements with intentions to launch Ether ETFs.
- Franklin Templeton disclosed details about their proposed fund, indicating a planned fee of 0.19%, which would be waived for the first six months on the first $10.0 billion of the ETF’s assets.
- Wood’s Bitcoin ETF experienced its largest one-day outflow since its launch, with approximately $100 million leaving the fund recently.
Political Factors Influencing Ethereum ETF Approval
ETF analyst James Seyffart from Bloomberg believes that the approval of spot Ethereum ETFs may have been influenced by political considerations rather than purely financial aspects. He suggested that the current political landscape, including governmental actions and responses from the crypto community, played a crucial role in getting the approval through. Seyffart emphasized that the approval of other crypto ETFs, such as Solana, is unlikely without significant regulatory changes to address concerns related to fraud and manipulation in the crypto market.
The Potential for a Solana Spot ETF
Crypto investor and trader Brian Kelly has proposed that Solana could potentially become the next cryptocurrency to have a spot ETF in the United States. In a recent interview on CNBC’s ‘Fast Money’, Kelly, who is also the CEO of the BKCM Digital Asset Fund, highlighted Solana as a strong contender for the next big cryptocurrency in the market. He urged investors to consider Solana alongside Bitcoin and Ethereum as key players in the current crypto cycle.
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