Ethereum
Cathie Wood’s Ark Invest abandons plan to issue Ethereum ETF
Dan Burgin
Ark Invest dumped Ethereum ETF after BTC ETF performed poorly
Read U.TODAY on
Google News
Cathie Wood’s Ark Investment asset management firm will not issue ETH ETF, says Bloomberg. Previously, Ark filed documents with the SEC in partnership with 21Shares to become an ETH ETF issuer.
The company will continue its partnership with 21Shares on the spot Bitcoin ETF, which launched earlier this year.
In its official statement, the company noted that it continues to believe in the “transformational potential and long-term value” of Ethereum. However, Ark will no longer pursue an Ether ETF product.
Although the reason for the sudden change remains unclear, Bloomberg analyst Eric Balchunas believes the move was driven by the ongoing “fee war” in the market, which is making it harder for issuers to remain profitable .
Previously it was reported that Ark hit a record cash outflow of $100 million on Thursday.
According to CNBC, Bitcoin ETFs have not gained traction among financial advisors. Concerns about market timing and regulatory compliance, as well as customer preference for long-term stability and growth, are the main reasons. In fact, some brokers limit purchases of Bitcoin ETFs, while others prohibit advisors from selling them.
Source: Glass knot
Initially, Bitcoin ETFs were seen as a way for advisors to help their clients invest in cryptocurrencies, but six months later, most advisors are avoiding them. Few discuss Bitcoin ETFs with their clients, and those with older, conservative clients are particularly dismissive.
Despite advisors’ lack of confidence in Bitcoin ETFs, investors do not appear to be losing their appetite. BlackRock’s Bitcoin ETF saw inflows of $169 million on Friday, according to Arkham data.
About the Author
Dan Burgin
Dan is an editor and writer with 12 years of experience in finance and emerging technologies, with a particular focus on crypto. Covering a wide range of topics, from fintech startups to AI, it provides an in-depth look at the current state of the crypto market, as well as insight into its potential for future disruption.