ARK Invest and 21Shares, two prominent firms in the asset management and fintech industries, have made significant changes to their application for an Ethereum exchange-traded fund (ETF). The updated registration statement, submitted to the U.S. Securities and Exchange Commission (SEC) on May 10th, reveals that the ability to stake a portion of the fund’s assets has been removed.
Staking, which involves locking digital assets to a proof-of-stake (POS) blockchain to support network operations and earn rewards, will no longer be a feature of the proposed ETF. The decision to remove this provision has sparked speculation among industry experts. Bloomberg senior ETF analyst Eric Balchunas suggests that it may be an attempt to preemptively address any concerns the SEC may have or a last-ditch effort to improve the chances of approval.
Balchunas, who previously expressed pessimism about the likelihood of the SEC approving spot Ethereum ETF applications, maintains his skepticism. He believes that the lack of engagement from the SEC is intentional rather than a delay tactic, and he sees no positive indicators that would suggest a favorable outcome. Despite his personal hope for approval, Balchunas assigns only a 25% probability for it.
As the wait for regulatory approval continues, investors and enthusiasts are advised to exercise caution and conduct thorough research before engaging in high-risk investments involving Bitcoin, cryptocurrencies, or digital assets. The Daily Hodl, where this article was sourced, emphasizes that all transfers and trades are done at one’s own risk, and any losses incurred are the responsibility of the individual. The publication does not provide investment advice or endorse the buying or selling of cryptocurrencies or digital assets.
