Cathie Wood's Ark Invest has withdrawn its application for a spot Ethereum ETF, citing a change in strategy. This move comes as the SEC has directed issuers to submit amended S-1 forms by Friday, with several firms already submitting their documents.

ARK Invest Shifts Focus

ARK Invest has decided to focus on its other investment products, including its disruptive innovation equity ETFs, digital asset futures ETFs, and the ARK Venture Fund. The firm remains committed to exploring ways to provide investors with exposure to Ethereum's underlying technology.

21Shares to Proceed Solo

21Shares will now proceed with the Ethereum ETF independently, removing ARK Invest from the associated documentation and name. Despite this change, ARK and 21Shares will continue to collaborate on Bitcoin and futures ETFs.

Fee War on Hold

Notably, there are no fees listed in any of the new S-1 filings, indicating that the anticipated fee war is currently on hold. This development may impact the competitiveness of the ETF market.

Last-Minute Filing of S-1 Forms

The U.S. SEC has directed issuers of prospective spot Ethereum ETFs to submit their amended S-1 forms by Friday. Several firms, including Franklin Templeton and BlackRock, have already submitted their documents. However, it may take several weeks for these forms to become effective and for the new financial products to start trading.

Conclusion

ARK Invest's decision to withdraw its application for a spot Ethereum ETF marks a significant shift in the firm's strategy. The move highlights the importance of adapting to changing market conditions and focusing on other investment opportunities.