ARK Invest has officially ended its partnership with 21Shares regarding their Ether ETF, although their collaboration continues on other projects such as the ARK 21Shares Bitcoin ETF launched in January.

21Shares has filed an updated application for its Ethereum spot ETF S-1, rebranding it from the ARK 21Shares Ethereum ETF to the 21Shares Core Ethereum ETF. Despite the rebranding and updated application, there are no changes in the fee structure. ARK Invest confirmed its decision not to proceed with an Ether ETF, citing a need to reassess its investment strategy, despite acknowledging Ethereum's groundbreaking potential and long-term value.

The decision to end the partnership on the Ether ETF does not affect the ongoing collaboration between ARK Invest and 21Shares on other initiatives. Notably, their Bitcoin ETF launched in January remains unaffected. In this partnership, 21Shares sponsors the ETF, with Delaware Trust Company acting as the trustee, while Coinbase Custody Trust Company securely holds the underlying Ether assets. ARK Investment Management has played a supporting role as a sub-adviser, responsible for marketing the shares to investors.

In addition to Bitcoin and Ethereum futures, ARK Invest and 21Shares have also launched the ARK 21Shares Blockchain and Digital Economy Innovation ETF. This ETF invests in public equities of companies within the blockchain industry, providing investors with what 21Shares describes as "holistic exposure" to the growth of blockchain technology.

Earlier filings in September 2023 saw ARK Invest and 21Shares submit an application for a spot Ether ETF, aiming to offer direct exposure to Ether and trading on the Cboe BZX Exchange, utilizing the CME CF Ether-Dollar Reference Rate – New York Variant. The proposal underwent revisions on May 10, where plans to stake a portion of the fund’s assets through third-party providers were dropped.

Recently, the U.S. Securities and Exchange Commission approved 19b-4 forms for eight Ethereum ETFs, although issuers still need their S-1 statements to become effective before trading can commence.