Ark Invest and 21Shares have decided to drop staking from their proposal for a spot Ethereum ETF. This decision comes as a surprise to many in the crypto community, as staking has been a key feature of other popular ETFs. Stay tuned for updates on this developing story.
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Ark Invest and 21 Shares have made a significant change to their spot Ethereum ETF proposal. In their updated filing on May 10, the firms dropped plans to stake a portion of the fund’s assets through third-party providers.
Previously, their Feb. 7 filing included a clause detailing 21 Shares’ intention to receive ETH as a staking reward. The earnings would have been treated as income generated from the fund. However, the latest filing removes this section, citing potential risks such as losses from slashing penalties and inaccessible funds during bonding and unbonding.
Bloomberg ETF analyst Erich Balchunas suggested that this change could be an attempt to align the application documents with SEC requirements. The SEC is expected to make a decision on various spot Ethereum ETF proposals within the next two weeks, including those from VanEck, Ark, and 21 Shares.
Expectations around approval are low, with Polymarket odds suggesting only a 10% chance of approval by the end of the month. Competing applications from Franklin Templeton, Fidelity, and Grayscale also include proposals around ETH staking.
Overall, the changes in the Ark Invest and 21 Shares’ ETF proposal highlight the evolving regulatory landscape surrounding Ethereum and crypto investments. As the SEC prepares to make its decision, the industry eagerly awaits the outcome and the potential implications for the broader Market.
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1. What is the reason for Ark Invest and 21Shares dropping staking from their spot Ethereum ETF proposal?
Both Ark Invest and 21Shares decided to drop staking from their proposal in order to streamline and simplify the ETF structure.
2. How will this change affect investors interested in the Ethereum ETF?
Investors will still have the opportunity to invest in the Ethereum ETF without the added complexity of staking, making it more accessible to a wider range of investors.
3. Will investors still be able to earn rewards from staking Ethereum?
While staking will no longer be included in the ETF proposal, investors can still participate in staking activities independently to earn rewards.
4. Are there any other changes to the Ethereum ETF proposal aside from dropping staking?
No, dropping staking is the only change that has been announced at this time.
5. When can investors expect the Ethereum ETF to be launched?
The launch date for the Ethereum ETF has not yet been announced, but both Ark Invest and 21Shares are working towards getting approval from regulatory bodies.
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