ARK Invest and 21Shares Exclude Staking from Ethereum ETF Application

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On May 10, ARK Invest and 21Shares submitted an updated application to launch a spot Ethereum-ETF. Unlike their previous application dated February 7, this new application does not include a clause on asset staking.

In the previous application, the companies had stated their intention to use the coin locking feature to generate additional returns for the fund.

This meant that a portion of the fund’s assets would be placed with reputable providers. However, in their latest application, this clause is notably absent.

Instead, the new application addresses broader issues related to staking, such as potential losses due to slashing (fines), temporary unavailability of funds during blocking and withdrawal, and the potential impact on the price of Ethereum.

According to Bloomberg stock analyst Eric Balchunas, this development could be an attempt by the companies to address potential concerns raised by the US Securities and Exchange Commission (SEC), even though the SEC has not officially commented on the matter.

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