Cathie Wood’s Ark Investment Management has withdrawn its involvement in the race to launch an exchange-traded fund (ETF) that would directly invest in Ether, the second-largest cryptocurrency.

The amended prospectus document, known as Form S-1, filed with the US Securities and Exchange Commission (SEC) on Friday, revealed that Ark’s name was removed from the application for the spot-Ether ETF that it had filed in partnership with 21Shares.

Consequently, the fund’s name was changed from Ark 21Shares Ethereum ETF to 21Shares Core Ethereum ETF.

Ark Remains Committed to Bitcoin Fund

The move comes after Ark joined forces with 21Shares as one of the successful issuers that launched spot-Bitcoin ETFs earlier this year.

Despite the withdrawal from the Ethereum ETF, Ark remains committed to its Bitcoin ETF, the $3.2 billion ARK 21Shares Bitcoin ETF (ticker ARKB), which currently holds the fourth position in terms of assets among Bitcoin ETFs.

The unexpected approval by the SEC of the 19b-4 filings made by exchanges operated by Cboe Global Markets Inc., Nasdaq, and the New York Stock Exchange to list spot-Ether ETFs created anticipation in the market.

However, issuers still await the regulator’s approval of their S-1 statements before trading can commence.

In response to the recent developments, 21Shares expressed enthusiasm about the SEC’s approval and reaffirmed their commitment to increasing access to cryptocurrencies as an asset class for US investors.

They also highlighted their continued partnership with Ark on the ARK 21Shares Bitcoin ETF, which was launched in January, as well as their existing lineup of futures products.

Several other issuers, including Franklin Templeton, Fidelity Investments, VanEck, and Invesco Ltd., have filed revised S-1 statements, signaling their intentions to launch Ether ETFs.

However, the SEC’s decision on these documents is yet to be determined.

Meanwhile, Franklin Templeton filed an amended document with details of its proposed fund, indicating a planned fee of 0.19%, which will be waived for the first six months on the first $10.0 billion of the ETF’s assets.

Notably, Wood’s Bitcoin ETF experienced its largest one-day outflow since its launch earlier this year, with nearly $100 million exiting the fund.

Ethereum ETF Approval Was Political

Bloomberg ETF analyst James Seyffart believes the approval of spot Ethereum ETFs was likely influenced by political decisions rather than purely financial considerations.

In a recent interview, Seyffart suggested that the political climate, including actions by the Biden administration and responses from the crypto community, played a significant role for the approval to go through.

Beyond Bitcoin and Ethereum, the approval of other crypto ETFs, including Solana, is unlikely without significant regulatory changes, Seyffart said.

He noted that a regulated market is needed to monitor these assets for fraud and manipulation.

In contrast, crypto investor and trader Brian Kelly has suggested that Solana could potentially become the next cryptocurrency to have a spot ETF in the United States.

In a recent episode of CNBC’s ‘Fast Money’, Kelly, who is also the founder and CEO of the BKCM Digital Asset Fund, posed the question, “The trade now is, who’s next?”

He then suggested, “You’ve got to think about Solana as probably the next one. Bitcoin, Ethereum, and Solana are probably the big three for this cycle.”

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