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ARK Invest Pulls Out of Ethereum ETF Application with 21Shares

On Cryptochronicle.xyz, it was reported that ARK Invest has decided to end its partnership with 21Shares for the proposed spot Ethereum ETF. The fund, previously known as the Ark 21Shares Ethereum ETF, has been rebranded to the 21Shares Core Ethereum ETF. Despite this change, ARK Invest and 21Shares will continue to collaborate on other projects, such as the ARK 21Shares Bitcoin ETF.

The SEC recently approved 19b-4 forms for eight Ethereum ETFs, but issuers are still waiting for their S-1 statements to become effective before trading can begin. Other issuers, including Franklin Templeton, Fidelity Investments, VanEck, and Invesco Ltd., have also filed revised S-1 statements for their proposed Ether ETFs.

Led by Cathie Wood, ARK Invest has decided to withdraw its involvement in launching an ETF that would directly invest in Ether, the second-largest cryptocurrency. The amended prospectus document, or Form S-1, filed with the SEC revealed that ARK’s name was removed from the application for the spot-Ether ETF that it had previously filed with 21Shares. As a result, the fund has been renamed the 21Shares Core Ethereum ETF.

Despite withdrawing from the Ethereum ETF, ARK Invest remains committed to its Bitcoin ETF, the ARK 21Shares Bitcoin ETF (ticker ARKB), which is currently one of the leading Bitcoin ETFs in terms of assets.

The decision by ARK Invest to withdraw from the spot Ethereum ETF comes after the successful launch of spot Bitcoin ETFs earlier this year. While the SEC’s approval of the 19b-4 filings for spot-Ether ETFs created anticipation in the market, issuers are still waiting for approval of their S-1 statements before trading can begin.

21Shares has expressed enthusiasm about the SEC’s approval and reiterated their commitment to increasing access to cryptocurrencies as an asset class for US investors. They also mentioned their continued partnership with ARK on the ARK 21Shares Bitcoin ETF and their lineup of futures products.

Despite several other issuers filing revised S-1 statements for Ether ETFs, the SEC’s decision on these documents is still pending. Bloomberg ETF analyst James Seyffart believes that political decisions may have influenced the approval of spot Ethereum ETFs, rather than purely financial considerations.

On the other hand, crypto investor Brian Kelly has suggested that Solana could potentially be the next cryptocurrency to have a spot ETF in the United States, following Bitcoin and Ethereum.

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