ARK Invest Changes Direction, Focuses On Bitcoin While Waiting For Ethereum ETF Clarity

JAKARTA - ARK Investment Management, led by prominent figure Cathie Wood, announced their withdrawal from plans to launch an exchange-trained fund (ETF) that invests directly in Ether, a second-ranked crypto asset after Bitcoin. The decision marks a significant change in strategy for companies that have long been known to support innovation in digital assets.

The recently updated document, known as the S-1 Form, was submitted to the US Securities and Exchange Commission (SEC) on Friday. In the document, it was revealed that ARK had removed its name from the app for the spot-Ether ETF previously filed alongside 21Shares. As a result, the name of the fund was changed from ARK 21Shares Ethereum ETF to 21Shares Core Ethereum ETF, signaling a shift in ARK focus.

Despite withdrawing from Ethereum ETF, ARK remains committed to its Bitcoin ETF, ARK 21Shares Bitcoin ETF, which has a value of 3.2 billion US Dollars (approximately IDR 51.9 trillion). The ETF is currently in fourth position in terms of assets among existing Bitcoin ETFs, demonstrating ARK's confidence in Bitcoin's long-term potential as an investment asset.

The decision comes after ARK joined 21Shares to launch spot-Bitcoin ETF earlier this year, which received unexpected approval from the SEC. Submission of 19b-4 by exchanges operated by Cboe Global Markets Inc., Nasdaq, and the New York Stock Exchange to list spot-Ether ETFs has created an anticipatory wave in the market. However, publishers are still awaiting regulatory approval of their S-1 statement before trading can begin.

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21Shares welcomed SEC approval and reaffirmed their commitment to expanding access to crypto assets as an asset class for US investors. They also highlighted their continued partnership with ARK on ARK 21Shares Bitcoin ETF launched in January, as well as their lineup of existing futures products.

Other publishers such as Franklin Templeton, Fidelity Investments, VanEck, and Invesco Ltd., have submitted updated S-1 statements, signaling their intention to launch Ether ETF. SEC decisions regarding these documents are still eagerly awaited.

Franklin Templeton, in particular, has submitted an updated document with details of the proposed funds, showing a planned fee of 0.19%, which will be released over the first six months for its first US$10 billion ETF asset.

The ETF analyst from Bloomberg, James Seyffart, quoted from CryptoNews, argues that Ethereum ETF's spot approval is more influenced by political decisions than pure financial considerations. Seyffart suggested that the current political climate, including actions by the Biden administration and responses from the crypto community, play an important role in this agreement.

On the other hand, Brian Kelly, a crypto investor and trader, has suggested that Solana could be the next cryptocurrency to have an ETF spot in the United States. In the latest episode of CNBC's Fast Money, Kelly stated that Solana, along with Bitcoin and Ethereum, could be the main trio in the current crypto investment cycle.