HomeEthereumARK Invest eliminates staking feature from Ethereum spot ETF filing

ARK Invest eliminates staking feature from Ethereum spot ETF filing


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.


XRP Outperforms BTC, SOL, and ETH on Binance, Coinbase, and Kraken in Key Metric

XRP Surpasses Bitcoin, Solana, and Ethereum in Trade Volume on Major Exchanges The cryptocurrency market is buzzing with excitement as XRP, the digital asset associated...

Asset manager predicts that Trump administration could designate Bitcoin as a strategic reserve asset

Bitcoin's Potential as a Strategic Reserve Asset Under a Future Trump Administration Asset manager Bryan Courchesne recently made a bold prediction on CNBC, suggesting that...

What crypto policies might potential Vice Presidents under Kamala Harris bring to the table?

Potential Democratic and Republican Candidates for the 2024 Presidential Election The 2024 presidential race is heating up as experts predict that United States Vice President...

Kaiko predicts that Ethereum price will be influenced by ETF inflows in the near future

Spot Ether ETF Inflows Expected to Impact Price Sensitivity, Says Kaiko The launch of spot Ether ETFs is set to shake up the crypto market...

Most Popular