Ark Invest and 21 Shares Drop Staking Plans in Updated Ethereum ETF Proposal on May 10
Ark Invest and 21 Shares Drop Staking Plans in Updated Spot Ethereum ETF Proposal
In a surprising turn of events, Ark Invest and 21 Shares have decided to drop their staking plans in their updated spot Ethereum ETF proposal. The firms’ previous filing on February 7th included a clause detailing their intention to stake a portion of the fund’s assets through third-party providers. This move was expected to garner ETH as a staking reward, treating the earnings as income generated from the fund. However, the latest filing, dated May 10th, has removed this section altogether.
The decision to remove the staking plans has raised some eyebrows in the industry. Bloomberg ETF analyst Erich Balchunas suggested that this change could be an attempt to align the application documents with SEC comments, even though there have been no official remarks from the regulator. He mentioned that this move could be a “Hail Mary” to improve the chances of approval or simply to provide the SEC with less information to base a rejection upon.
With the SEC expected to make a decision on various spot Ethereum proposals in the next two weeks, the fate of Ark Invest and 21 Shares’ application hangs in the balance. The regulator is set to rule on VanEck’s spot Ethereum application on May 23rd, followed by Ark and 21 Shares’ application on May 24th. Despite low expectations for approval, Polymarket odds suggest a slight increase in the chances of spot Ethereum ETFs gaining approval by the end of the month.
Competing applications from firms like Franklin Templeton and Fidelity have also included provisions for ETH staking in their filings, adding to the complexity of the decision-making process for the SEC. Grayscale, in a March filing, also mentioned the possibility of staking in their proposal.
As the industry eagerly awaits the SEC’s decision, the future of spot Ethereum ETFs remains uncertain. Will Ark Invest and 21 Shares’ changes to their proposal make a difference in the outcome? Only time will tell.
Stay tuned for updates on this developing story as we await the SEC’s final decision on spot Ethereum ETFs.
