ARK Invest will launch the Spot Ethereum ETF app from 21shares.

TLDR

ARK Invest has ended its partnership with 21Shares for its proposed Space Ethereum ETF. The fund was switched from the Ark 21Shares Ethereum ETF to the 21Shares Core Ethereum ETF. ARK Invest and 21Shares will continue to collaborate on other projects such as the ARK 21Shares Bitcoin ETF. The SEC recently approved Forms 19b-4 for eight Ethereum ETFs, but issuers still need their S-1 filings before trading begins. Several other issuers, including Franklin Templeton, Fidelity Investments, VanEck and Invesco Ltd., have filed amended S-1 filings for their proposed Ether ETFs.

Cathy Wood-led ARK Invest has dropped out of the race to launch an exchange-traded fund (ETF) that invests directly in ether.

The amended prospectus document, known as Form S-1, filed with the US Securities and Exchange Commission (SEC) on Friday names ARK as a joint venture with 21Shares from Spot-Ether EF.

As a result, the name of the fund has been changed from Ark 21Shares Ethereum ETF to 21Shares Core Ethereum ETF.

Despite the withdrawal from the Ethereum ETF, ARK Invest remains committed to its Bitcoin ETF, the $3.2 billion ARK 21Shares Bitcoin ETF (registration ARKB), which currently ranks fourth in terms of assets among Bitcoin ETFs.

ARK statement on not doing Eth spot pic.twitter.com/Z48SMyXvat

— Eric Balchunas (@EricBalchunas) May 31, 2024

The move comes after ARK partnered with 21Shares, one of the successful issuers to launch a spot-Bitcoin ETF earlier this year.

The SEC's unexpected approval of 19b-4 filings by Cboe Global Markets Inc., Nasdaq and active exchanges on the New York Stock Exchange has sparked speculation in the market to list spot-Ether ETFs.

However, traders are awaiting regulatory approval of their S-1 filings before trading begins.

In response to the recent developments, 21Shares expressed their excitement about the SEC approval and affirmed their commitment to increasing access to cryptocurrencies as an asset class for US investors.

. They also highlighted their ongoing partnership with ARK on the ARK 21Shares Bitcoin ETF, which launched in January, as well as their upcoming product lineup.

Several other issuers, including Franklin Templeton, Fidelity Investments, VanEick and Invesco Ltd., have filed amended S-1 filings, indicating their interest in launching Ether ETFs.

However, the SEC's decision on these documents is yet to be determined.

Bloomberg ETF analyst James Seifert believes that the approval of the Space Ethereum ETF was influenced not only by financial considerations, but also by political decisions.

Conversely, crypto investor and trader Brian Kelly suggested that Solana could be the next cryptocurrency spot ETF in the United States, following Bitcoin and Ethereum.