ARK Invest Out of ETH ETF Race, Ends Partnership with 21Shares

ARK Invest no longer ambitious about ETH ETFs, but still continues partnership with 21Shares on other ventures.

Cathie Wood's praying for Ethereum ETF.
Created by Kornelija Poderskytė from DailyCoin
  • ARK Invest is no longer a partner with 21Shares for their proposed ETH ETF. 
  • An ARK spokesperson confirmed the change. 
  • Ark’s sudden exit could imply the road to ETH ETF approval is long and not worth the energy. 

In a dramatic twist, Cathie Wood’s Ark Invest has unexpectedly pulled out of the Ethereum ETF race. It is ending its partnership with 21Shares and casting doubts on the prospects of approval just as issuers fine-tune their strategies for the final leg of the race.

Ark Invest No Longer Involved in ETH ETF

In a newly amended registration statement, Ark 21Shares Ethereum ETF has rebranded itself to the 21Shares Core Ethereum ETF, marking Ark Invest’s exit. 


An ARK spokesperson confirmed, "ARK believes in its transformative potential and the long-term value of the Ethereum blockchain, but, at this time, ARK will not be moving forward with an Ethereum ETF." 

The spokesperson clarified that 21Shares and ARK will continue collaborating on other projects, including their Bitcoin ETF, launched earlier this year, and the Blockchain and Digital Economy Innovation ETF.

“We remain fully committed to the ARK 21Shares Bitcoin ETF as we believe bitcoin is a public good that everyone should be able to access at a low cost.” the ARK spokesperson shared. 
“We will continue evaluating efficient ways to provide our investors with exposure to this innovative technology in a way that unlocks its full benefits." they continued. 

Ark Invest’s decision could prompt issuers to reevaluate their strategies as they move forward with their S-1 filings, 

Could ARK’s Exit Be a Cause for Concern?

On May 23, the SEC surprised the crypto industry by suddenly approving ETH ETFs, breathing life back into the market just as everyone braced for disappointment. Since then, it’s been a wild race among issuers to file their S-1 forms, the final stretch before they hit the trading floor. 

But here’s a twist: many of these updated S-1 forms are incomplete, with major issuers like BlackRock, VanEck, and even 21Shares holding back on key details like fees. The incomplete forms could be a strategic move to provoke guiding comments from the SEC or to gauge what other issuers are planning for their fees to secure a competitive edge.


Or it could be that Issuers are cautiously tiptoeing through their filings, anticipating a potential rejection. While Bloomberg ETF analyst Eric Balchunas is hopeful, eyeing a possible late June trading kickoff, he’s quick to caution that the SEC could throw issuers for another loop of fine-tuning, suggesting that July 4 is the date to watch.

Over the past week, issuers’ hesitancy and reluctance have echoed in Ethereum’s price action. After surging from $2900 to $3900, ETH has been stuck in a holding pattern below $3800, implying market indecision and a lingering fog of uncertainty. 

Ark’s sudden exit from the fray could signal that the road to an Ethereum ETF approval is a winding one, not worth the energy expended. However, until the SEC delivers concrete comments or outright rejections, it’s anyone’s guess how this saga will unfold, especially after the commission’s surprise in May.

On the Flipside

  • Ark Invest CEO and Founder Cathie Wood claims the SEC’s unexpected approval of ETH ETF proposals is likely because of electoral pressure. 
  • James Seyffart estimates that, if approved, Ethereum ETFs could capture 20-25% of the investment compared to Bitcoin ETFs
  • Ark Invest’s decision to remove staking from its proposal set off a chain reaction, prompting other issuers to follow suit. This ripple effect ultimately paved the way for the SEC’s approval. 

Why This Matters

Ark Invest’s exit from the ETH ETF race is concerning and paints a worrying picture of the journey to potential approval. 
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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Insha Zia

Insha Zia is a senior journalist at DailyCoin covering crypto developments, especially in the Cardano ecosystem. With a Bachelor of Science in Computer Systems Engineering, he delivers high-quality articles with his technical background and expertise in data analysis and programming languages, aiming to educate and inform readers accurately, transparently, and engagingly. Insha believes education can drive mass adoption of the crypto space, and he is committed to giving DailyCoin readers a better understanding of the technology.