ARK, 21Shares strike staking feature from Ethereum ETF plans

ARK Invest and 21Shares Revise Ethereum ETF Proposal

ARK Invest and 21Shares have made strategic changes to their Ethereum exchange-traded fund (ETF) proposal by removing the crypto staking feature. This decision follows discussions with the U.S. securities regulator, prompting a shift to a cash creation and redemption model from the previously considered in-kind redemption approach.

SEC Response and Updated Filings

In a recent filing submitted on May 10, 21Shares indicated the removal of staking a portion of the fund’s assets through third-party providers. The companies have transitioned to purchasing Ether corresponding to the order amount under the revised cash-creation model, aligning with regulatory preferences seen in the approved Bitcoin ETF prospectus.

Delays in Ethereum ETF Launch

Despite the promising prospects of the spot Ether ETF, regulatory delays have affected decisions on various proposals, including the Invesco Galaxy spot Ethereum ETF. The SEC is now facing critical rulings on pending spot Ether ETF applications from industry giants, potentially shaping institutional participation and mainstream acceptance of Ether as an investable asset.

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