ARK Invest removes staking feature from Ethereum Spot ETF application

ARK Invest and 21Shares amend the S-1 Form for the proposed Spot Ethereum Exchange Traded Fund (ETF), staking As shown in the filing dated May 10th.

In February, the companies updated their applications to include the option to stake Ethereum in addition to cash-only redemptions. Staking is good How fund managers can profit from large amounts of cryptocurrencies that ETFs do more than just earn management fees.

However, at the time, experts believed that ARK Invest's staking The proposal for Ethereum was more of a “study” to test the SEC’s response than a confident expectation of SEC approval.

The SEC indicated that staking could result in assets being classified as securities, which is undesirable for Spot Ethereum ETFs.Last year, the SEC faced off against the Kraken. I was demanded to Suspension of staking service.

Legendary trader Peter Brandt said in a recent post about X that the SEC: Trying to Crack down on staking.

If the crypto community is upset about this issue, @SECGov treatment of $XRP, $ETH securities, etc.

prediction:
Please wait until @USOCC @SECGov @USTreasury Perform thorough pile driving attacks

It's going to be a disaster https://t.co/CnXEusSAvG

— Peter Brandt (@PeterLBrandt) May 9, 2024

Latest amendments to ARK Invest’s filing increase speculation regarding ongoing discussions between the SEC and Spot Ethereum ETF Applicant, proposal The application has been modified to match the SEC settings.

The reason for ARK Invest's recent changes remains unclear as no official statement has been released from the parties involved.

crypto analyst marking May will be an important month for the future of these Spot Ethereum ETFs. The SEC is expected to: decide Regarding VanEck's May 23 application. The general consensus among analysts is: This means that the application is likely to be rejected.

Earlier this week, Grayscale, one of the world's leading digital asset managers, withdrew its bid for an Ethereum futures ETF., It may avoid sole liability for legal challenges if rejected by the SEC.

[Updated with ARK Invest’s amendment in February, Kraken’s case, and Peter Brandt’s statement]