ARK Invest Exits Ethereum ETF Race

ARK Invest has ended its partnership with 21 Shares, marking its exit from the Ethereum ETF race.

According to registration filings with the US Securities and Exchange Commission (SEC), the Ark 21 Shares Ethereum ETF has now been rebranded to 21 Shares Core Ethereum ETF.

“At this time, ARK will not be moving forward with an Ethereum ETF,” an ARK spokesperson reportedly said by email. “We will continue evaluating efficient ways to provide our investors with exposure to this innovative technology in a way that unlocks its full benefits.”

The spokesperson reiterated that the firm is still "committed" to its Bitcoin ETF, ARK 21Shares Bitcoin ETF (ARKB), which is the fourth largest BTC ETF by AUM.

ARK's exit comes just less than two weeks after the SEC gave its official approval for Ethereum ETFs.

“We are enthusiastic about the SEC’s recent 19b-4 approval and are committed to increasing access to crypto as an asset class for US investors,” 21Shares said in a statement.

“21Shares and ARK remain committed partners on the ARK 21Shares Bitcoin ETF, which launched in January, as well as on our existing lineup of futures products.”

ARK isn't the only firm to abandon its Ethereum ETF plans. Hashdex also withdrew its ETH ETF application on 24 May, the day after the SEC approved 19b-4 forms for eight Ethereum ETFs, excluding Hashdex.

It is unclear why Hashdex withdrew its application but a source close to the firm said it"no longer plans to bring a single asset Ether ETF to the market.”

No date has been given as to when Ethereum ETFs will start trading in the market but last week, BlackRock updated its Ethereum ETF S-1 form with the SEC. The S-1 form is required by the SEC before a security can be publicly traded. Bloomberg ETF analyst James Seyffart suggested that the move signals that the issuers and the regulator are headed towards the launch of ETH ETFs.