Cathie Wood’s Ark Investment Management has withdrawn from the race to launch a spot Ether exchange-traded fund (ETF). The firm’s name has been removed from the application filed with 21Shares.

21Shares has submitted an updated application for its Ethereum spot ETF, rebranding the fund from Ark 21Shares Ethereum ETF to 21Shares Core Ethereum ETF. Ark Invest has also ended its partnership with 21Shares regarding this ETF.

The amended Form S-1 shows no changes to the fees. Despite acknowledging Ethereum’s potential and long-term value, a representative from Ark Invest confirmed that the firm decided not to proceed with an Ether ETF, citing a need to reassess its investment strategy.

This decision does not affect the ongoing collaboration between 21Shares and ARK Invest on other projects, such as the ARK 21Shares Bitcoin ETF launched in January.

Earlier this year, Ark and 21Shares teamed up to launch one of 11 spot-Bitcoin ETFs in the U.S. The $3.2 billion Ark 21Shares Bitcoin ETF (ARKB) ranks fourth in assets, following BlackRock Inc.’s $19 billion iShares Bitcoin Trust (IBIT), which leads the category in terms of assets and inflows.

In their partnership, 21Shares sponsored the ETF, with Delaware Trust Company acting as the trustee. Coinbase Custody Trust Company securely holds the underlying Ether assets, while ARK Investment Management served as a sub-adviser responsible for marketing the shares to investors.

Last week, the U.S. Securities and Exchange Commission (SEC) approved 19b-4 forms for eight Ethereum ETFs. Issuers still need their S-1 statements to become effective before trading can commence.

“We are enthusiastic about the SEC’s recent 19b-4 approval and are committed to increasing access to crypto as an asset class for U.S. investors,” 21Shares said in a statement.

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