ARK Invest and 21Shares have made a significant amendment to their proposed spot Ethereum exchange-traded fund (ETF) by removing the staking component. This move, as revealed in a filing dated May 10, comes after the firms previously included the option to stake Ethereum in their filing back in February.
Staking, which allows fund managers to profit from the crypto assets held by ETFs, was initially seen as a way to enhance the fund’s revenue potential. However, experts had doubts about the feasibility of ARK Invest’s staking proposal for Ethereum, suggesting it was more of a test to gauge the Securities and Exchange Commission’s (SEC) response.
The SEC’s stance on staking has been clear, with concerns that it could classify the asset as a security, which is not desirable for spot Ethereum ETFs. This concern was further highlighted when the SEC fined Kraken and demanded a halt to its staking services.
Renowned trader Peter Brandt recently predicted a crackdown on staking by the SEC, adding to the uncertainty surrounding the future of spot Ethereum ETFs.
The latest amendment to ARK Invest’s application has sparked speculation about ongoing discussions between the SEC and ETF applicants, hinting at a possible alignment of applications with SEC preferences.
As the SEC is expected to make a decision on VanEck’s filing on May 23, analysts are closely monitoring the situation, with many predicting a rejection of the filing. Grayscale’s withdrawal of its bid for an Ethereum futures ETF earlier this week further adds to the complexity of the situation.
Overall, May is shaping up to be a critical month for the future of spot Ethereum ETFs, with regulatory challenges and uncertainties looming large. Stay tuned for updates as the situation continues to evolve.
ARK Invest and 21Shares have made a significant amendment to their proposed spot Ethereum exchange-traded fund (ETF) by removing the staking component. This move, as revealed in a filing dated May 10, comes after the firms previously included the option to stake Ethereum in their filing back in February.
Staking, which allows fund managers to profit from the crypto assets held by ETFs, was initially seen as a way to enhance the fund’s revenue potential. However, experts had doubts about the feasibility of ARK Invest’s staking proposal for Ethereum, suggesting it was more of a test to gauge the Securities and Exchange Commission’s (SEC) response.
The SEC’s stance on staking has been clear, with concerns that it could classify the asset as a security, which is not desirable for spot Ethereum ETFs. This concern was further highlighted when the SEC fined Kraken and demanded a halt to its staking services.
Renowned trader Peter Brandt recently predicted a crackdown on staking by the SEC, adding to the uncertainty surrounding the future of spot Ethereum ETFs.
The latest amendment to ARK Invest’s application has sparked speculation about ongoing discussions between the SEC and ETF applicants, hinting at a possible alignment of applications with SEC preferences.
As the SEC is expected to make a decision on VanEck’s filing on May 23, analysts are closely monitoring the situation, with many predicting a rejection of the filing. Grayscale’s withdrawal of its bid for an Ethereum futures ETF earlier this week further adds to the complexity of the situation.
Overall, May is shaping up to be a critical month for the future of spot Ethereum ETFs, with regulatory challenges and uncertainties looming large. Stay tuned for updates as the situation continues to evolve.
