Ethereum

Spot

ARK Invest and 21Shares have made a significant update in their proposal for a spot Ethereum exchange-traded fund (ETF). The latestregulatory filing sheds light on how the ETF will handle the creation and redemption process. 
This decision, outlined in the filing posted on Wednesday, means that Authorized Participants will now exclusively use cash to create shares and will receive cash in return upon redeeming shares. This aligns with the<a href="https://news.todayq.com/ripple-requests-extension-in-sec-lawsuit-xrp-continues-to-decline/" target="_blank" rel="noopener noreferrer nofollow"> Securities and Exchange Commission’s</a> (SEC) preference for a cash model. Involving the immediate sale of assets to provide cash to investors. This approach differs from an in-kind model, which offers more flexibility in managing the portfolio but was not favored by the SEC for <a href="https://news.todayq.com/spot-bitcoin-etfs-face-rejection-in-singapore-mas/" target="_blank" rel="noopener noreferrer nofollow">spot bitcoin ETFs</a>. Balchunas take on the cash model 
The significance of this change is underscored by Bloomberg Intelligence analyst Eric Balchunas. Also noting its resemblance to the process approved for spot bitcoin ETFs.Balchunas stated, “HERE WE GO AGAIN: ARK/21Shares has just filed an amended S-1 for their spot Ether ETF, looks like they updated to be only cash creations and some other things that bring it in line with the recently approved spot BTC etf prospectus.” 
Additionally, the updated filing introduces a new staking component. The filing mentions the possibility of staking a portion of the Trust’s assets through trusted Staking Providers. They would mainly use ether tokens from the Trust’s Cold Vault Balance. Staking rewards, received in ether tokens, may constitute income for the Trust, although the amount can vary significantly.
Scott Johnsson of Van Buren Capital explained the inclusion of brackets around the language regarding staking as a means to initiate dialogue around potential staking activities. Johnsson stated, “For those not familiar with the curiosities of legal drafting, the implication of adding brackets around new block language like this is saying, ‘we’re putting this here because we want to add it… but let’s have the conversation because this might come across as inflammatory and it’s not critical to the application.'” Further impact of the spot ETH ETF delay 
The proposal for the <a href="https://news.todayq.com/blackrock-picks-coinbase-for-spot-ethereum-etf-files-s-1-with-sec/" target="_blank" rel="noopener noreferrer nofollow">spot Ethereum ETF</a> was initially submitted by ARK Invest and 21Shares in September, aiming to provide direct exposure to ether. The ETF is set to trade on the Cboe BZX Exchange, utilizing the CME CF Ether-Dollar Reference Rate – New York Variant. The sponsors, trustees, and custodians for the ETF include 21Shares, Delaware Trust Company, and Coinbase Custody Trust Company, respectively, with ARK Investment Management serving as the sub-adviser.
Having the decision on the ETF postponed by the SEC, deadlines for public comment have also been extended. This delay mirrors similar setbacks seen in other spot Ethereum ETF proposals, including those from Grayscale Investments and Invesco Galaxy. Despite regulatory setbacks, the price of Ethereum’s native token, ether (ETH), surged above $2,400 as news of the amended filing emerged. As of now, ETH stands at $2425.16.
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Spot ETH ETF update; ARK Invest and 21Shares address new strategies

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