Fun

ARK and 21Shares drop staking plans from Ethereum ETF proposal

News Feed - 2024-05-11 05:05:14

Amaka Nwaokocha51 minutes agoARK and 21Shares drop staking plans from Ethereum ETF proposalBloomberg ETF analyst Erich Balchunas suggests the update may be a response to potential SEC feedback despite no official comments.250 Total viewsListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksARK Invest and 21Shares removed their staking plans from their updated spot Ethereum ETF proposal, submitted on Friday, May 10.


In the updated filing submitted on Friday, there is a noticeable absence of a clause stating that 21Shares would stake a portion of the fund’s assets through third-party providers. It said, “Sponsor may, from time to time, stake a portion of the Trust’s assets through one or more trusted Staking Providers.”


In their Feb. 7 filing, the companies included a clause stating that 21Shares anticipated receiving ETH as a reward for staking and intended to classify the resulting earnings as income generated by the fund.


However, the latest filing removes the relevant section, but it maintains broader comments, including losses due to slashing penalties, temporarily inaccessible funds during bonding and unbonding, and potential impacts on the price of ETH.


According to Bloomberg ETF analyst Erich Balchunas’ Friday post on X, the update may be an effort to refine the application in response to potential SEC feedback despite the absence of official comments.


Alternatively, Balchunas suggests that the change could be a last-ditch effort (“Hail Mary”) or a strategic move to limit the information available for the SEC to base a potential rejection on.


In September, ARK Invest and 21Shares submitted an application for a spot Ether exchange-traded fund (ETF). The fund aims to provide direct exposure to Ether and will trade on the Cboe BZX Exchange. The exchange will utilize the CME CF Ether-Dollar Reference Rate – New York Variant.


Related:JPMorgan reports holding shares of several spot Bitcoin ETFs


21Shares is the sponsor, Delaware Trust Company is the trustee, and Coinbase Custody Trust Company holds the Ether assets, while ARK Investment Management serves as a sub-adviser, marketing the Shares.


The SEC has been delaying making decisions on spot Ethereum ETF proposals in recent weeks. The agency delayed making a decision on the Invesco Galaxy spot Ethereum ETF proposal and also pushed back deadlines for other proposals from Grayscale, Franklin Templeton, VanEck, and BlackRock.


The regulator must decide on VanEck’s spot Ethereum application by May 23, followed by Ark and 21Shares’s application on May 24.


The SEC approved the listing and trading of spot Bitcoin ETFs on U.S. exchanges in January. However, optimism for the approvals of spot Ethereum ETFs has dwindled in recent months, with Bloomberg ETF analyst Eric Balchunas lowering his estimate of the chances of a spot Ethereum ETF approval by late May from about 70% to 25%.


Magazine: What do crypto market makers actually do? Liquidity, or manipulation# Cryptocurrencies# Ethereum# Investments# SEC# Ethereum ETFAdd reaction

News Feed

El Salvador Bitcoin holdings hit record $164M as BTC profits pass $50M
William Suberg9 hours agoEl Salvador Bitcoin holdings hit record $164M as BTC profits pass $50MBitcoin adoption in El Salvador has netted the government up to $53 million in profits thanks to BTC price record highs.3527
Avalanche Nears Breakout – Top Analyst Sets $420 Target For AVAX This Cycle
Este artículo también está disponible en español. Avalanche (AVAX) has surged over 40%, reaching a critical supply level that, if broken, could trigger a substantial rall
Bitcoin’s Four-Month Bear Trend Intact Even After 16% Price Rise
View Bitcoin remains trapped in a four-month falling channel despite registering double-digit gains last week. Prices could pull back to former resistance-turned-support of $8,800 in the next 24 hours. The bearish case w
Ezra Reguerra13 hours agoUser claims $11M in Blur token rewards at NFT marketplace’s season 2 airdropNFT marketplace Blur allocated a total reward pool of 300 million tokens, worth around $146 million, for traders who
Ethereum Profit Streak Signals ATH Breakout For Over 90% Of Investors
Este artículo también está disponible en español. Ethereum (ETH) is once again in the news, but this time it’s good news for buyers. Recent data shows that over 90%
Gold-Based Digital Assets Issued in Russia
Gold-Based Digital Assets Issued in Russia A blockchain platform built by Russia’s largest banking institution, Sber, has been used to issue digital assets based on gold. The val
On-Chain Metrics Reveal The Most Critical Resistance For Bitcoin – Can BTC Break $97.5K?
Este artículo también está disponible en español. Bitcoin continues to trade within a tight range, holding above the $94K level while struggling to break past the $100K m
Sasha Shilina23 minutes agoWhat is OpenSea and how to use it?This guide delves into the significance of the OpenSea decentralized marketplace, its pros and cons, and its role in the NFT revolution.35 Total viewsListen to
Digital Assets Worth 2 Billion Rubles Issued in Russia in Less Than a Year
Digital Assets Worth 2 Billion Rubles Issued in Russia in Less Than a Year Digital financial assets (DFAs) for a total exceeding $26 million have been issued in Russia in the past
BIS Chief Banker Criticizes Bitcoin as Inherently Risky, Says BTC Vulnerable to 51% Attack
BIS Chief Banker Criticizes Bitcoin as Inherently Risky, Says BTC Vulnerable to 51% Attack Bank for International Settlements (BIS) general manager Agustin Carst
Ethereum Recovery Gains Strength: Massive Comeback Above Key Support
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
As Bitcoin Rises, Why is Ethereum Struggling To Catch Up? Analyst Explains
Este artículo también está disponible en español. While Bitcoin has faced strong bullish momentum in recent weeks, achieving new all-time highs consistently for days, Eth