Ark Investment Management, led by Cathie Wood, has withdrawn from the race to launch a spot-Ether exchange-traded fund (ETF) in partnership with 21Shares.
The amended prospectus document filed with the US Securities and Exchange Commission (SEC) late Friday revealed that Ark’s name was removed from the application, and the fund’s name was changed to 21Shares Core Ethereum ETF.
An ARK spokesperson stated that the company will not be moving forward with an Ethereum ETF but remains committed to their Bitcoin ETF, the ARK 21Shares Bitcoin ETF (ARKB).
The SEC’s unexpected approval of 19b-4 filings made by exchanges run by Cboe Global Markets Inc., Nasdaq, and the New York Stock Exchange to list spot-Ether ETFs has prompted issuers to file revised S-1 statements. 21Shares expressed enthusiasm about the SEC’s approval of increased access to crypto for US investors.
Several issuers, including Franklin Templeton, Fidelity Investments, VanEck, and Invesco Ltd., have filed amended documents with the SEC. Franklin Templeton plans to charge a 0.19% fee on its fund, which will be waived six months after launch on the first $10.0 billion of the ETF’s assets.
Franklin Templeton’s competitive 0.19% sponsor fee has set the stage for this battle, currently standing as the most affordable option among its competitors.
While the SEC set a deadline for prospective spot Ethereum ETF issuers to file their amended S-1 forms, it may take several weeks for these forms to become effective and for the new financial products to commence trading. VanEck and BlackRock have also filed their updated forms, with the latter disclosing a $10 million seed for its ETF, while VanEck reported a $100,000 seed investment.
