Asset manager ARK Invest and fintech company 21Shares have made significant revisions to their application for a spot Ethereum (ETH) exchange-traded fund (ETF).
Based on the updated ARK 21Shares Ethereum ETF registration statement filed with the U.S. Securities and Exchange Commission (SEC) on May 10, the companies are removing the ability to stake some of the fund’s assets.
The amended proposal no longer contains the provision stating that the issuer “may from time to time deploy some of the assets of the trust through one or more third-party staking providers.”
Staking allows cryptocurrency holders to earn rewards by locking their digital assets on a proof-of-stake (POS) blockchain to support the operation of the network.
In a after on social media platform
“While it seems like this is getting their documents into shape based on SEC comments (which would be good news), there have been no comments. So it’s probably a Hail Mary, or maybe SEC is trying to give one less thing to use in their rejection. Not sure yet).”
Balchunas before said that the chances of the SEC greenlighting Ethereum ETF applications are low.
“As far as approval of ETH ETFs is concerned, we are pessimistic at 25% odds, although to be honest it is a very pessimistic 25%. The lack of commitment appears to be intentional versus procrastination. No positive signals/intel anywhere you look. Personally, I hope they approve, but it just doesn’t look good.
Don’t miss a beat – Subscribe to receive email alerts straight to your inbox
Check price action
follow us on XFacebook and Telegram
Surf to the Daily Hodl mix
Generated image: Midjourney
