ARK Invest Withdraws from Ethereum ETF Race
ARK Invest, under the leadership of Cathie Wood, has decided to step back from the competition to launch an exchange-traded fund (ETF) that would directly invest in Ether, the second-largest cryptocurrency.
Rebranding and Collaboration
- ARK Invest has ended its partnership with 21Shares for the proposed spot Ethereum ETF.
- The fund has been rebranded from Ark 21Shares Ethereum ETF to 21Shares Core Ethereum ETF.
- ARK Invest and 21Shares will continue their collaboration on other projects, such as the ARK 21Shares Bitcoin ETF.
SEC Approval and Future Plans
- The SEC recently approved 19b-4 forms for eight Ethereum ETFs, but issuers still need their S-1 statements to become effective before trading can begin.
- Several other issuers, including Franklin Templeton, Fidelity Investments, VanEck, and Invesco Ltd., have filed revised S-1 statements for their proposed Ether ETFs.
The decision to withdraw from the Ethereum ETF race was revealed in an amended prospectus document, Form S-1, filed with the US Securities and Exchange Commission (SEC). The document showed that ARK’s name was removed from the application for the spot-Ether ETF that it had filed in partnership with 21Shares. As a result, the fund’s name has been changed to 21Shares Core Ethereum ETF.
Despite this withdrawal, ARK Invest remains committed to its Bitcoin ETF, ARK 21Shares Bitcoin ETF (ARKB). The fund, currently holding the fourth position in terms of assets among Bitcoin ETFs, continues to be a focus for the company. The move comes after ARK successfully launched spot-Bitcoin ETFs earlier this year in collaboration with 21Shares.
Market Anticipation and Regulatory Hurdles
- The unexpected approval of 19b-4 filings by the SEC for spot-Ether ETFs listing created anticipation in the market.
- Issuers are still awaiting the regulator’s approval for their S-1 statements before trading can commence.
21Shares, despite the setbacks, expressed enthusiasm about the SEC’s approval and emphasized their commitment to providing increased access to cryptocurrencies as an asset class for US investors. The company also highlighted their ongoing partnership with ARK on the ARK 21Shares Bitcoin ETF, launched earlier this year in January, along with their existing range of futures products.
Other issuers, such as Franklin Templeton, Fidelity Investments, VanEck, and Invesco Ltd., have also signaled their intentions to launch Ether ETFs by filing revised S-1 statements. However, the final decision from the SEC is pending.
Expert Views and Speculations
- Bloomberg ETF analyst James Seyffart sees the approval of spot Ethereum ETFs as more than just financial considerations.
- Crypto investor and trader Brian Kelly has suggested potential trends where Ethereum could follow the path of Bitcoin.
Hot Take: The Future of Ether ETFs
As the race to launch Ether ETFs continues, regulatory hurdles and market anticipation play a crucial role in shaping the future of these investment products. Despite ARK Invest’s withdrawal from the Ethereum ETF race, the collaboration between key players like 21Shares and the commitment of other issuers indicate a growing interest in bringing cryptocurrency investment options to mainstream investors.
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