BTCNaN
ETHNaN
BNBNaN
SOLNaN
XRPNaN
DOGENaN
BTCNaN
ETHNaN
BNBNaN
XRPNaN
SOLNaN
DOGENaN
Play Article AudioRead
Picture of the author
Rhodilee Jean Dolor
1 week, 1 day ago

ARK and 21Shares Remove Staking Provision From Spot Ethereum ETF Application

Play Article AudioRead
Asset manager ARK Invest and fintech firm 21Shares have made key revisions to their application for a spot Ethereum (ETH) exchange-traded fund (ETF).

Based on the updated ARK 21Shares Ethereum ETF registration statement submitted to the U.S. Securities and Exchange Commission (SEC) on May 10th, the firms are scrapping the ability to stake a portion of the fund’s assets.

The amended proposal no longer includes the provision that states the issuer “may, from time to time, stake a portion of the Trust’s assets through one or more third-party staking providers.”

Staking allows cryptocurrency holders to earn rewards by locking their digital assets to a proof-of-stake (POS) blockchain to support the operation of the network.

In a post on social media platform X, Bloomberg senior ETF analyst Eric Balchunas speculates why the staking provision was removed.

“While it may seem like this is them getting their documents in shape based on SEC comments (which would be good news) there hasn’t been any comments. So it’s probably either a Hail Mary or maybe trying to give SEC one less thing to use in their rejection. Not sure (yet).”

Balchunas previously said that the odds of the SEC greenlighting spot Ethereum ETF applications are low.

“Regarding ETH ETF approval, we are holding the line at 25% odds although to be honest, it is a very pessimistic 25%. The lack of engagement seems to be purposeful vs. procrastination. No positive signs/intel anywhere you look. Personally hope they do approve it but it just ain’t looking good.”

Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Follow us on X Facebook and Telegram

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney
EDITOR’S CHOICE