As a seasoned crypto investor, I have seen my fair share of twists and turns in the digital asset market. The recent news about Cathie Wood’s Ark Invest withdrawing its application for an Ethereum ETF came as a surprise to many, including myself. While I respect ARK’s decision to focus on its existing investment products, I am excited to see that 21Shares will be going solo with the Ethereum ETF.
I’ve been closely following the developments regarding Ethereum ETF applications. Most contenders have updated their S-1 filings in preparation for potential approval. However, I, as an investor with Ark Invest, have decided to take a different approach. We have chosen to withdraw our application for an Ethereum ETF, which consequently means we are no longer partnered with 21Shares.
21Shares To Go Solo with Ethereum ETF
ARK Invest has made it known that they won’t be introducing an Ethereum ETF just yet. Nonetheless, their dedication to allowing investors access to Ethereum’s foundational technology remains unwavering.
ARK prioritizes its proficiency in proactive investing by offering various financial instruments. Some examples are disruptive innovation-focused equity ETFs, futures ETFs for digital assets, and the ARK Venture Fund.
As an analyst, I’d highlight that my firm, ARK, is one of the select organizations granted approval by the SEC to introduce a Bitcoin Exchange-Traded Fund (ETF) in January. Our commitment to this venture is evident through our focus on the ARK 21Shares Bitcoin ETF (ARKB). This investment vehicle reflects our conviction in making it simpler and more affordable for individuals to invest in Bitcoin.
In a recent announcement, Eric Balchunas of Bloomberg revealed that 21Shares intends to move forward with an Ethereum ETF without involvement from ARK Invest. The collaboration between the two entities on Bitcoin and futures ETFs remains unchanged.
Balchunas pointed out that none of the recent S-1 filings contain information about fees, implying that the expected fee competition has temporarily paused.
“21Shares is currently going it alone with the Ethereum ETF, while ARK has been removed from the name and documentation. However, they continue to collaborate on Bitcoin and futures’ ETFs. Moreover, there are no fees mentioned in any of their new S-1 filings, indicating a pause in the ongoing fee competition.”
— Eric Balchunas (@EricBalchunas) May 31, 2024
Last Minute Filing of S-1 Forms
The Securities and Exchange Commission (SEC) in the United States has ordered Ethereum spot ETF applicants to submit amended S-1 forms by this coming Friday. In a last-minute move, Franklin Templeton submitted their filing on that very same day. However, even with this timely submission, it may still take several weeks for these forms to be approved and for the new Ethereum financial products to begin trading.
As a crypto investor, I’m excited about the recent developments in the Ethereum ETF space. Last week, we received positive news when regulatory bodies gave their initial approval to spot Ethereum ETF applications from companies like VanEck. In response, VanEck swiftly submitted an amended S-1 form. Following this move, I was pleasantly surprised to see BlackRock join the race, filing an updated S-1 form on Thursday. Their ETF will begin with a seed capital of $10 million.
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2024-06-01 07:37