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The spot Ethereum exchange-traded fund (ETF) has seen several developments this week since its listing approval on May 23. Most notably, Cathie Wood’s ARK Invest has discontinued its plans for a spot Ethereum ETF. ARK will continue to pursue further investor opportunities, a spokesperson said in an email.
“ARK will not be pursuing an Ethereum ETF at this time,” the spokesperson said. “We will continue to evaluate efficient ways to provide investors with exposure to this innovative technology in a way that maximizes its benefits.”
This comment follows 21Shares’ updated Form S-1 for its Ethereum product, which no longer names ARK Invest as its ETF partner. The proposed ETF was also changed from Ark ’21Shares Ethereum ETF’ to ’21Shares Core Ethereum ETF’.
ARK Invest has partnered with 21Shares to pursue regulatory approval for the launch of a spot Bitcoin fund. The two asset management companies expanded their partnership by applying to provide a spot Ethereum ETF in September last year. At the time, the SEC’s decision on spot Bitcoin ETFs was still pending.
After receiving approval from the SEC in January, the spot Bitcoin ETF, ARK 21Shares Bitcoin ETF (ARKB), began trading on the CBOE on January 11. As of May 31, ARKB held approximately $3.2 billion in Bitcoin (BTC).
While Ark is currently putting its Ethereum ETF plans on hold, the company confirms its continued commitment to its Bitcoin ETF.
“21Shares and ARK remain committed partners on the ARK 21Shares Bitcoin ETF, launched in January, and our existing lineup of futures products,” 21Shares confirmed in a statement.
Spot Ethereum ETF Report: Weekly Roundup
This week’s highlight is the ETF issuer’s updated S-1 form. At press time, all eight issuers had filed the required documents with the SEC.
VanEck’s S-1 amendment was submitted the same day it was approved. BlackRock released an updated filing earlier this week. Other issuers also sent revised filings by Friday, the deadline set by the SEC.
Hashdex’s proposed Ethereum ETF was withdrawn on May 24, a day after the SEC approved the remaining eight funds excluding Hashdex. Hashdex is also the only issuer that did not amend its 19b-4 filing prior to its Ethereum ETF decision.
Fidelity is the only issuer to disclose management fees in its updated filings. The planned fee is 0.19%.
The next step is for the SEC to review the filings and provide feedback. The process could require at least two additional revisions to the S-1 document, according to people familiar with the situation.
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