ARK Invest and 21Shares have made changes to their spot Ethereum ETF proposal by removing the staking plans. The updated filing no longer includes a clause mentioning that 21Shares would stake a portion of the fund’s assets. This clause previously stated that 21Shares would receive ETH as a reward for staking and classify it as income generated by the fund. The latest filing still addresses other aspects such as slashing penalties, temporarily inaccessible funds, and potential impacts on ETH price. Some speculate that this change is an attempt to refine the application based on potential feedback from the SEC, although no official comments have been made. Alternatively, it is suggested that this could be a strategic move to limit the information available for the SEC to base a rejection on.
In September, ARK Invest and 21Shares originally submitted their application for a spot Ether exchange-traded fund (ETF). This fund aims to provide direct exposure to Ethereum and will trade on the Cboe BZX Exchange. The fund will use the CME CF Ether-Dollar Reference Rate – New York Variant. 21Shares is the sponsor, Delaware Trust Company is the trustee, and Coinbase Custody Trust Company holds the Ether assets. ARK Investment Management serves as a sub-adviser and markets the Shares.
Recently, the SEC has been postponing decisions on spot Ethereum ETF proposals. The agency delayed its decision on the Invesco Galaxy proposal and extended deadlines for proposals from Grayscale, Franklin Templeton, VanEck, and BlackRock. The SEC must make a decision on VanEck’s spot Ethereum application by May 23, followed by ARK and 21Shares on May 24. While spot Bitcoin ETFs have been approved for listing and trading on US exchanges, optimism for spot Ethereum ETF approvals has waned. Bloomberg ETF analyst Eric Balchunas has lowered his estimate of the chances of a spot Ethereum ETF approval by late May from 70% to 25%.
I don’t think the chances of a spot Ethereum ETF approval are looking good anymore. It’s disheartening for investors who were hopeful. 😟
This is a smart move by ARK Invest and 21Shares! Removing the staking plans from the Ethereum ETF proposal shows that they are willing to adapt and refine their application based on potential feedback from the SEC.
Removing important clauses without any official comments raises suspicion. It feels like they’re hiding something.
It’s great to see that they are still addressing other important aspects such as slashing penalties, inaccessible funds, and potential impacts on ETH price. They’re taking a thorough approach!
This change feels like a missed opportunity. It could have provided more incentive for investors to get exposure to Ethereum. 😒
It’s concerning that the SEC is postponing decisions and extending deadlines. It shows a lack of clarity and consistency in the approval process.