ARK Invest has decided to conclude its partnership with 21Shares regarding the proposed Ethereum fund. Cathie Wood’s Ark Investment Management, known for its innovative and forward-thinking investment strategies, had initially partnered with 21Shares to launch an exchange-traded fund (ETF) focused on investing directly in Ether, the second-largest cryptocurrency by market capitalization.
However, in an updated filing submitted to the US Securities and Exchange Commission (SEC) on Friday, it was revealed that Ark has decided to withdraw its involvement from the proposed ETF. This means that Ark’s name has been removed from the application for the ETF.
As a consequence of Ark’s withdrawal, the name of the ETF has been changed from “Ark 21Shares Ethereum ETF” to “21Shares Core Ethereum ETF.” This reflects 21Shares’ continued commitment to launching an ETF that tracks the performance of Ethereum, but without the direct involvement of Ark Investment Management.
The reasons behind Ark’s decision to withdraw from the partnership and the ETF initiative are not explicitly mentioned in the filings. However, this development underscores the complexities and challenges involved in launching cryptocurrency-focused investment products, particularly ETFs, in the highly regulated financial markets.
Ark’s Bitcoin Bet: Resolute Amidst Market Volatility”
Following its collaboration with 21Shares, Ark emerged as one of the proficient issuers to debut spot-Bitcoin ETFs earlier this year.
In spite of withdrawing from the Ethereum ETF, Ark maintains its steadfast focus on the Bitcoin ETF. With assets totaling $3.2 billion, the ARK 21Shares Bitcoin ETF (ticker ARKB) continues to hold the fourth position among Bitcoin ETFs, underscoring Ark’s enduring dedication to cryptocurrency investments.
The sudden approval by the SEC of the 19b-4 filings from exchanges managed by Cboe Global Markets Inc., Nasdaq, and the New York Stock Exchange to list spot-Ether ETFs sparked excitement in the market.
Issuers are still awaiting the regulator’s green light on their S-1 statements before trading can begin.
Amidst the recent progress, 21Shares expressed optimism about the SEC’s approval and restated their commitment to broadening access to cryptocurrencies as an investment option for US investors. They also underscored their continued partnership with Ark on the ARK 21Shares Bitcoin ETF, introduced in January, as well as their existing suite of futures products.
Deadline Dash: S-1 Forms Filed at the Eleventh Hour:
Other issuers, such as Franklin Templeton, Fidelity Investments, VanEck, and Invesco Ltd., have also submitted revised S-1 statements, indicating their interest in launching Ether ETFs. However, the SEC’s decision on these filings is pending.
In the meantime, Franklin Templeton has updated its proposed fund details, revealing a planned fee of 0.19%. This fee will be waived for the first six months on the initial $10.0 billion of the ETF’s assets.
Interestingly, Wood’s Bitcoin ETF saw its largest one-day outflow since its inception earlier this year, with nearly $100 million exiting the fund.
What is Ethereum?
Ethereum operates as a Proof-of-Stake blockchain, driving decentralized applications (dApps) through smart contracts, devoid of centralized governance. As a trailblazer in smart contract technology, it boasts the broadest array of dApps, spanning decentralized exchanges, crypto lending platforms, and beyond.
Additionally, Ethereum hosts a multitude of Layer 2 solutions, catering to users seeking more cost-effective and expeditious transaction processing on the blockchain. Notable among these solutions are Arbitrum, consolidating multiple transactions into a single Ethereum transaction, and Polygon’s Proof-of-Stake chain, operating as a parallel sidechain to Ethereum.
History of Ethereum:
In 2013, Vitalik Buterin introduced the whitepaper, laying the foundation for the Ethereum project. Gavin Wood followed up in 2014 with the publication of the yellowpaper, delving into the technical aspects of Ethereum’s workings. After a fundraising sale in September 2014, the network was launched in July 2015. Finally, on 15 September 2022, Ethereum marked a significant milestone by transitioning from Proof-of-Work to Proof-of-Stake consensus through the Merge.
What's on the horizon for Ethereum's future?
After the Merge, the final stage of Ethereum 2.0 is sharding. Sharding involves dividing the Ethereum blockchain’s database into 64 shard chains. This approach allows validators to focus solely on verifying their assigned shards, rather than the entire network, making it easier for anyone to run a node. Sharding is expected to promote further decentralization, improve scalability, and reduce gas fees on the Ethereum network.
If you Need more information related to Crypto you can reach out to our website page https://cryptosportlifestyle.com/crypto/
Incredible information, thanks for sharing.
Excellent Content.