Cathie Wood's Ark Investment Drops Plans For Spot-Ether ETF, Says It Will Focus On Spot Bitcoin ETF Instead

Cathie Wood’s Ark Investment Management has withdrawn from the race to launch an ETF directly investing in Ether ETH/USD.

What Happened: The firm's name was removed from an application for a spot-Ether ETF filed in collaboration with 21Shares. According to a report by Bloomberg, the fund’s name was changed to 21Shares Core Ethereum ETF from Ark 21Shares Ethereum ETF. 

An Ark spokesperson told the outlet, “At this time, ARK will not be moving forward with an Ethereum ETF.” The spokesperson added that Ark will continue exploring ways to expose investors to Ethereum technology.

Earlier this year, Ark and 21Shares successfully launched a spot Bitcoin BTC/USD ETF.

The $3.2 billion ARK 21Shares Bitcoin ETF (ARKB) ranks fourth in assets, trailing BlackRock Inc. BLK’s $19 billion iShares Bitcoin Trust (IBIT).

Recently, the SEC approved 19b-4 filings by exchanges like Cboe, Nasdaq and NYSE to list spot-Ether ETFs. Issuers still need SEC approval for their S-1 statements before trading can start.

Also Read: Here's Why Cathie Wood Says Bitcoin Could Explode By Over 3,500% From Current Levels

In response to the approval, 21Shares expressed enthusiasm and reaffirmed its partnership with Ark on the ARK 21Shares Bitcoin ETF and other futures products.

On Friday, Franklin Templeton filed an amended document for its fund, planning to waive a 0.19% fee for the first six months.

Other issuers, such as Fidelity Investments, VanEck, and Invesco Ltd., also filed revised S-1 statements.

According to Bloomberg, Wood’s Bitcoin ETF saw its largest one-day outflow since its January launch, with nearly $100 million exiting the fund.

Why It Matters: The withdrawal from the Ether ETF race by Ark Investment Management comes amid a series of strategic moves by the firm.

Recently, Ark sold nearly $28 million worth of Robinhood Markets Inc shares. This sell-off coincided with Robinhood's launch of a new cryptocurrency trading API, reflecting Ark's active management of crypto-related investments. 

Now Read: Cathie Wood's $3 Million Bet On An Ultra-Cheap Stock Revealed

This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Photo: Shutterstock