Ethereum

Franklin

Bitcoin

The spot Ethereum <a href="https://news.todayq.com/will-btc-price-recover-heres-what-etf-data-says/" rel="noopener noreferrer nofollow">exchange-traded fund</a> (ETF) proposal is facing an approval delay from the US Securities and Exchange Commission (SEC). Amid this slowdown, ARK Invest and 21Shares have removed plans for staking activities. However, ETH price saw some decline over the past few days. Revision on ETH ETF plans 
As per reports, The revised filing shows no longer such a clause stating that 21Shares would stake a portion of the fund’s assets through third-party providers. Earlier, the companies had suggested their intention to stake a portion of the trust’s assets while anticipating receiving Ether rewards for staking activities.
The latest filings are omitting these sections while retaining broader comments linked to potential risks. This includes slashing penalties and impacts on the Ether price action due to bonding and unbonding of funds.
Eric Balchunas, Bloomberg ETF analyst, hinted that this update could be a reply to potential feedback from the US SEC. However, this would have come despite the absence of official comments. He suggests that it may be a strategic move to limit the information available to the SEC for possible rejection.
The spot Ether ETF proposal was submitted around September 2023. It had a aim to provide direct exposure to the second biggest company through trading on the Cboe BZX Exchange. It will utilise the CME CF Ether-Dollar Reference Rate – New York Variant.&nbsp;
The trustee for the fund is Delaware Trust Company with Coinbase Custody Trust Company holding the underlying Ether assets. ARK Investment Management serves as a sub-adviser. What is the SEC doing? 
The commission has been delaying decisions on various ETF proposals. This includes applications from Invesco Galaxy, Grayscale, Franklin Templeton, VanEck, and BlackRock. The regulator is set to decide on VanEck’s spot Ethereum application by May 23. It will be followed by ARK and 21Shares’s application on May 24.
While spot Bitcoin ETFs were approved for listing and trading on US exchanges in January, optimism for spot Ethereum ETF approvals has diminished in recent months. Balchunas has lowered his estimate of the chances of a spot Ethereum ETF approval by late May from about 70% to 25%.
Ethereum price has dropped by 18% in the last 30 days, while it has further declined by 7% in the last 7 days. ETH is trading at an average price of $2,907, at the press time. Its 24 hour trading volume is up by 6% to stand at $11.44 billion.

SEC’s delay forces ARK, 21Shares to revise Ethereum ETF plans

Todayq News

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