Cryptocurrencies

21Shares filed an updated filing for its S-1 ETF, renaming it

21Shares has filed an updated filing for its S-1 ETF, renaming the fund from the Ark 21Shares Ethereum ETF to the 21Shares Core Ethereum ETF. Additionally, ARK Invest has ended its partnership with 21Shares and will no longer participate in the ETF.

According to the recently amended Form S-1, there are no updated fees. Despite recognizing the revolutionary potential and long-term value of Ethereum, an ARK Invest representative confirmed that the company has decided not to move forward with an Ethereum (ETH) ETF, citing the need to reassess your investment strategy.

ARK 21Shares Partnership

However, this decision does not affect the ongoing cooperation between 21Shares and ARK Invest in other projects, such as the ARK 21Shares Bitcoin (BTC) ETF launched in January.

As part of its partnership, 21Shares sponsored the ETF, with a Delaware trust serving as trustee. The Coinbase Custody Trust securely holds the underlying Ethereum assets, while ARK Investment Management played a supporting role as sub-advisor responsible for marketing the shares to investors.

Besides Bitcoin and Ethereum futures, the duo launched another product called ARK 21Shares Blockchain and Digital Economy Innovation ETF. This ETF is designed to invest in public shares of companies operating in the blockchain sector.

According to 21Shares, this provides investors with what it describes as “comprehensive exposure” to the growth of blockchain technology.

Ark21 shares previous repositories

ARK Invest and 21Shares revised their spot ETF proposal on May 10. They have given up sharing part of the fund’s assets via external service providers.

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In their February 7 filing, the companies included a clause stating that 21Shares expects to receive ETH as a reward for staking and intends to classify the resulting profits as revenue generated by the fund.

In September 2023, ARK Invest and 21Shares filed for a spot ether ETF. The fund aims to provide direct exposure to Ethereum and will trade on the Cboe BZX exchange, using the CME CF reference rate for Ethereum and the dollar – New York variant.

Last week, the United States Securities and Exchange Commission approved Forms 19b-4 for eight Ethereum ETFs. Issuers still need their S-1 filings to become effective before negotiations can begin.

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