ARK Invest has decided not to issue a spot Ethereum ETF alongside 21Shares, despite the success of their Bitcoin ETF. The decision may be due to the high costs associated with launching and maintaining ETFs, as well as uncertainties around profitability. Additionally, ARK may be waiting for the Securities and Exchange Commission to approve staking for Ethereum ETFs.
The partnership between ARK and 21Shares for a spot Ethereum ETF has been dissolved, with 21Shares now pursuing the ETF on its own. The success of their Bitcoin ETF, which has accumulated nearly $3.5 billion in assets, highlights the potential demand for Ethereum ETFs. However, with fees at 0.21%, profitability may be a challenge for issuers.
Another factor to consider is the lack of staking services in current ETF designs, which means investors would miss out on potential earnings from staking their Ether. This could impact the demand for Ethereum ETFs, as investors may be hesitant to pay fees without the staking element.
Overall, the decision by ARK Invest to not pursue a spot Ethereum ETF at this time reflects the complexities and challenges associated with launching and maintaining such products. Investors and industry experts are closely watching for developments in the ETF space, particularly in relation to staking services for Ethereum.