As a seasoned crypto investor with a keen interest in the ETF market, I’m disappointed but not entirely surprised by Ark Investment Management’s decision to withdraw from the Ethereum spot ETF race. Cathie Wood and her team have demonstrated a strong commitment to cryptocurrencies through their successful partnership with 21Shares on the ARK 21Shares Bitcoin ETF. However, as market conditions evolve and investment strategies shift, it’s essential for firms like Ark to reassess their priorities.
Cathie Wood’s Ark Investment Management has stepped back from the competition to create a spot Ethereum ETF through 21Shares, as indicated by the withdrawal of their application.
Twenty-One Shares has made a revised proposal for its Ethereum exchange-traded fund (ETF), changing the name from “Ark Twenty-One Shares Ethereum ETF” to “Twenty-One Shares Core Ethereum ETF.”
Ark Invest has also ended its partnership with 21Shares regarding this ETF.
The revised Form S-1 reveals no modifications regarding the fees. An Ark Invest spokesperson acknowledged Ethereum’s promise and future worthiness but announced that the company has chosen against pursuing an Ether ETF. They explained the necessity of reevaluating their investment approach.
As a analyst, I would express it this way: The current undertaking doesn’t influence the existing partnership between 21Shares and ARK Invest in handling other initiatives, including the successful launch of the ARK 21Shares Bitcoin ETF back in January.
This year, Ark and 21Shares collaborated to introduce one of the eleven Bitcoin spot ETFs available in the United States. The Ark 21Shares Bitcoin ETF by Ark, with assets worth $3.2 billion, currently holds the fourth position in this category. The leading position is occupied by BlackRock Inc.’s iShares Bitcoin Trust, boasting an impressive $19 billion in assets and inflows.
As a crypto investor, I’d explain it this way: “I invested in a cryptocurrency ETF where 21Shares took the sponsorship role, while Delaware Trust Company was appointed as the trustee to ensure the fund’s compliance with regulatory requirements.”
The Ether assets are safely kept by Coinbase Custody Trust Company, while ARK Investment Management acted as a marketing advisor to attract investors towards purchasing the corresponding shares.
Last week, the SEC gave its approval to 19b-4 forms for eight Ethereum ETFs. However, before trading can begin, the issuers must have their S-1 statements made effective.
“21Shares is thrilled about the SEC’s latest 19b-4 approval and is dedicated to expanding the availability of cryptocurrencies as an investment option for US residents,” the company declared.
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2024-06-02 21:08