- Ark Invest and 21Shares amended their proposed spot Ethereum ETF application, introducing cash creations/redemptions instead of actual ETH. This key change mirrors recently approved Bitcoin ETFs.
- The amendment also suggests the ETF issuers intend to engage in Ethereum staking, though notes risks like potential loss.
- While SEC approval remains uncertain, the update is positive progress. The crypto community will watch for the SEC’s decision on the ETF in May.
Amendment Introduces Cash Creations and Redemptions
The amendment states that authorized financial firms will only have access to cash creations and redemptions for ETF shares. They will not be allowed to create or redeem shares using actual ETH. Cash creations and redemptions were key to recent approvals of spot Bitcoin ETFs.
Update Also Puts Forward ETH Staking
The filing also suggests that the ETF issuers intend to engage in Ethereum staking. It states that 21Shares generally expects to stake ETH from the Trust’s holdings. However, the filing notes staking comes with risks like potential loss.
Amendment May Be Positive For ETH ETF Approval
The amendment is relatively good news for a spot Ethereum ETF approval. The SEC recently extended deadlines for other proposed ETH ETFs. Today’s amendment indicates progress for the Ark/21Shares ETF. Still, the SEC must decide on the ETF by May 23. Expectations for approval are mixed.
Ethereum Price Reacts Positively
While unclear if the amendment affected market sentiment, Ethereum’s price has gained more than the broader crypto market following the news. This may signal investor optimism.
The Ark/21Shares ETF amendment introduces cash creations/redemptions and possible ETH staking. While approval is uncertain, the update is a step forward. The crypto community will watch closely for the SEC’s decision in May.