HomeEthereumArk Invest and 21Shares remove staking from proposed Ethereum ETF

Ark Invest and 21Shares remove staking from proposed Ethereum ETF

-


Ark Invest and 21 Shares Drop Staking Plans in Updated Ethereum ETF Proposal

Ark Invest and 21 Shares have made a significant change to their spot Ethereum ETF proposal, dropping plans for staking in their updated filing on May 10. The firms had previously included a clause in their Feb. 7 filing that outlined their intention to stake a portion of the fund’s assets through third-party providers.

This decision means that 21 Shares will no longer receive ETH as a staking reward and will not treat earnings as income generated from the fund. The firms cited risks associated with staking, such as potential losses from slashing penalties and inaccessible funds during bonding and unbonding, as reasons for removing the staking section from their proposal.

Bloomberg ETF analyst Erich Balchunas suggested that this change could be an attempt to address SEC comments or provide less information for the agency to base a rejection upon. The SEC is expected to make a decision on various spot Ethereum proposals, including those from VanEck, Ark, and 21 Shares, within the next two weeks.

Expectations for approval are low, with Polymarket odds suggesting only a 10% chance that spot Ethereum ETFs will gain approval by the end of the month. Competing applications from Franklin Templeton, Fidelity, and Grayscale also include proposals around ETH staking, indicating a growing interest in this aspect of the market.

Overall, the decision to drop staking plans in their updated proposal could have significant implications for Ark Invest and 21 Shares as they await the SEC’s decision on their spot Ethereum ETF.

LATEST POSTS

Ethereum and Solana Face Uncertain Short-Term Outlook

Analysis of Ethereum and Solana Price Trends: Short-Term Bearish Outlook with Strong Resistance Levels In the world of cryptocurrency, Ethereum and Solana are two major...

Was DJT Crypto Launched by Barron Trump and Martin Shkreli?

The Mystery Behind the Trump-Branded Cryptocurrency Involving Barron Trump and Martin Shkreli The latest buzz in the cryptocurrency world involves a mysterious new Trump-branded coin,...

What You Need to Know About SEC Using Ripple Case in Lawsuit Against Binance

The Ripple Effect: SEC Uses Ripple Case to Strengthen Lawsuit Against Binance The battle between the SEC and Binance has taken a new turn as...

Dell CEO Shares Cookie Monster Bitcoin Meme, Emphasizes Importance of Scarcity in Value Creation

Heading: Michael Dell's Playful Interaction with Bitcoin Sparks Speculation Tech billionaire Michael Dell, CEO of Dell Technologies, recently made waves in the crypto world with...

Most Popular