ARK Invest ends partnership with 21Shares on Ether ETF

21Shares has filed an amended S-1 filing for the Ethereum spot ETF, rebranding the fund from the Ark 21Shares Ethereum ETF to the 21Shares Core Ethereum ETF. Additionally, ARK Invest has terminated its partnership with 21Shares and will no longer be involved with the ETF.

There are no updated charges pursuant to the newly amended Form S-1. Despite the recognition of Ethereum's fundamental potential and long-term value, a representative of ARK Invest confirmed that the company has decided not to move forward with the Ether (ETH) ETF, citing the need to re-evaluate its investment strategy.

ARK 21 shares partnership

However, this decision does not affect the ongoing cooperation between 21Shares and ARK Invest on other projects, such as the ARK 21Shares Bitcoin (BTC) ETF, which was launched in January.

Through their partnership, 21Shares sponsored the ETF, with a Delaware trust company acting as trustee. Coinbase Custody Trust Company holds the Ether assets in safekeeping, while ARK Investment Management played a supporting role as a sub-advisor responsible for marketing the shares to investors.

In addition to Bitcoin and Ethereum futures, the duo also offered another product called the ARK 21Shares Blockchain and Digital Economy Innovation ETF. This ETF is designed to invest in the public equity of companies in the blockchain industry.

According to 21Shares, this provides investors with what it describes as “universal exposure” to the development of blockchain technology.

Ark21 shares previous documents

ARK Invest and 21Shares revised their Ether ETF proposal on May 10. They dropped plans to share some of the fund's assets with third-party providers.

Related: Spot Ethereum ETF ‘Fee War' Begins as Franklin Templeton Reveals Fees

In their Feb. 7 filing, the companies included a clause stating that 21 shares will receive ETH as rewards, with the intention of classifying the proceeds as income earned by the fund.

In September 2023, ARK Invest and 21Shares submitted an application for the Space Ether ETF. The fund aims to provide direct exposure to Ether and is traded on the Cboe BZX exchange, using the CME CF Ether-Dollar Reference Rate – New York differential.

Last week, the US Securities and Exchange Commission approved Forms 19b-4 for eight Ethereum ETFs. Issuers still need their S-1 statements to be effective before trading begins.

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