ARK Invest has decided to end its partnership with 21Shares for the proposed Ethereum Fund. This decision was reflected in the amended Form S-1 document filed with the SEC, where Ark’s name was removed from the application for the Ether ETF that it had previously filed in collaboration with 21Shares. As a result, the fund’s name has been changed to 21Shares Core Ethereum ETF.
Despite this change, Ark remains dedicated to its Bitcoin Fund, specifically the $3.2 billion ARK 21Shares Bitcoin ETF (ticker ARKB), which has become one of the top Bitcoin ETFs in terms of assets. The recent approval by the SEC of 19b-4 filings made by various exchanges to list spot-Ether ETFs has created anticipation in the market, with issuers eagerly awaiting the regulator’s approval before trading can begin.
21Shares has expressed excitement about the potential approval of Ether ETFs by the SEC and has reaffirmed their commitment to providing access to cryptocurrencies as an asset class for US investors. They also mentioned their ongoing partnership with Ark on the ARK 21Shares Bitcoin ETF and their lineup of futures products.
Several other issuers, such as Franklin Templeton, Fidelity Investments, VanEck, and Invesco Ltd., have also filed revised S-1 statements indicating their plans to launch Ether ETFs, but the SEC’s decision on these documents is pending. Franklin Templeton specified a planned fee of 0.19% for their proposed fund, with a waiver for the first six months on the first $10.0 billion of assets.
In a surprising turn of events, Bloomberg ETF analyst James Seyffart suggested that political decisions may have influenced the approval of spot Ethereum ETFs rather than purely financial considerations. He believes that the political climate and actions by the Biden administration played a significant role in the approval process. Seyffart also mentioned that the approval of other crypto ETFs, including Solana, is unlikely without substantial regulatory changes.
On the other hand, crypto investor Brian Kelly has proposed that Solana could potentially be the next cryptocurrency to have a spot ETF in the US. In a recent episode of CNBC’s ‘Fast Money’, Kelly, who is the founder and CEO of the BKCM Digital Asset Fund, emphasized Bitcoin, Ethereum, and Solana as the main contenders for this cycle.