A novel method to synthesize “clean” carbon nanotubes with relatively high yield in a hydrogen arc discharge has been developed. The quality and yield of the tubes depend sensitively on the gas pressure in the arc discharge. Sharp, open-ended nanotubes with clear lattice fringes at the edges and empty interiors have been observed. The existence of these frozen-open-ended tubes as part of nanotube-bundles provides evidence for an open-ended growth model for nanotubes. Using time of flight mass spectrometry, it was found that fullerenes, such as C60 and C70, are almost absent from the soot collected in the hydrogen arc discharge. The effect of hydrogen on the formation of fullerenes, both in the laboratory and in space, will be discussed.