Ark Invest exits Ether ETF race, 21Shares rebrands fund

Cathie Wood’s Ark Investment Management has dropped out of the race to launch a spot ether exchange-traded fund (ETF), with its name removed from the application to 21Shares.

21Shares has submitted an updated application for its Ethereum spot ETF, rebranding the fund from Ark 21Shares Ethereum ETF to 21Shares Core Ethereum ETF.

Ark Invest has also terminated its partnership with 21Shares regarding this ETF.

The amended Form S-1 does not show any change in fees. Despite acknowledging Ethereum’s potential and long-term value, a representative from Ark Invest confirmed that the firm has decided not to proceed with the Ether ETF, citing the need to re-evaluate its investment strategy.

This decision will not affect ongoing collaboration between 21Shares and ARK Invest on other projects, such as the ARK 21Shares Bitcoin ETF, which launched in January.

Earlier this year, Ark and 21Shares teamed up to launch one of 11 spot Bitcoin ETFs in the US. The $3.2 billion Ark 21Shares Bitcoin ETF (ARKB) ranks fourth in terms of assets, behind BlackRock Inc.’s $19 billion iShares Bitcoin Trust (IBIT). It tops the category in terms of assets and entries.

21Shares sponsored the ETF in its partnerships and Delaware Trust Company acted as trustee.

Coinbase Custody Trust Company held the underlying Ether holdings securely, while ARK Investment Management served as a sub-adviser responsible for marketing the shares to investors.

Last week, the U.S. Securities and Exchange Commission (SEC) approved 19b-4 forms for eight Ethereum ETFs. Issuers still need S-1 filings to go into effect before the start of trading.

“We are excited about the SEC’s recent 19b-4 approval and are committed to increasing access to crypto as an asset class for U.S. investors,” 21Shares said in a statement.