Ark Investment Management has withdrawn its involvement in launching an exchange-traded fund (ETF) investing in Ether, the second-largest cryptocurrency. The amended prospectus revealed that Ark’s name was removed from the application for the spot-Ether ETF, and the fund’s name was changed to 21Shares Core Ethereum ETF. Despite this, Ark remains committed to its Bitcoin ETF, ARK 21Shares Bitcoin ETF, and is continuing its partnership with 21Shares. The SEC’s recent approval of spot-Ether ETF filings has created anticipation in the market, and issuers are waiting for the regulator’s approval before trading can begin.
21Shares expressed enthusiasm about the approval of spot-Ether ETFs and reaffirmed their commitment to increasing access to cryptocurrencies as an asset class for US investors. Several other issuers, including Franklin Templeton, Fidelity Investments, VanEck, and Invesco Ltd., have filed revised S-1 statements to launch Ether ETFs. Franklin Templeton disclosed details of its proposed fund, including a planned fee of 0.19%, which will be waived for the first six months. Wood’s Bitcoin ETF experienced a significant outflow, with nearly $100 million exiting the fund. It is suggested that the approval of spot Ethereum ETFs was politically influenced rather than purely financial considerations.
Bloomberg ETF analyst James Seyffart believes that political decisions and the current climate, including actions by the Biden administration and responses from the crypto community, played a significant role in the approval of spot Ethereum ETFs. Seyffart believes that regulatory changes are needed for other crypto ETFs to be approved, including Solana. On the other hand, crypto investor Brian Kelly suggested that Solana could potentially become the next cryptocurrency to have a spot ETF in the United States. In a recent episode of CNBC’s ‘Fast Money’, Kelly posed the question of who is next after Bitcoin and Ethereum, suggesting Solana as a potential candidate. He highlighted Bitcoin, Ethereum, and Solana as the top three cryptocurrencies for this cycle.
The unexpected approval of 19b-4 filings by the SEC for exchanges to list spot-Ether ETFs has created anticipation in the market, with issuers awaiting approval of their S-1 statements to commence trading. 21Shares expressed their commitment to increasing access to cryptocurrencies for US investors and highlighted their partnership with Ark on the ARK 21Shares Bitcoin ETF. Other issuers, including Franklin Templeton, Fidelity Investments, VanEck, and Invesco Ltd., have filed revised S-1 statements indicating their intentions to launch Ether ETFs. Ongoing developments in the cryptocurrency market will continue to shape the regulatory landscape for ETFs and investor access to digital assets.
