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ARK Invest, an investment management firm, and 21Shares, a cryptocurrency exchange firm, have decided to drop the staking plans from their updated spot Ethereum ETF proposal. 
In the updated <a href="https://www.sec.gov/Archives/edgar/data/1992508/000121390024041758/ea0205580-01.htm">filing</a> submitted on May 10, the duo has scrapped the part that said 21Shares would stake a portion of the fund’s assets through third-party providers. Before, it mentioned, “Sponsor may, from time to time, stake a portion of the Trust’s assets through one or more trusted Staking Providers.” 
In their February 7 filing, the companies mentioned that 21Shares expected to receive Ethereum as a reward for staking and planned to classify the earnings as income generated by the fund. 
The latest filing removed that part but still mentions potential losses, temporary inaccessibility of funds, and the impact on Ethereum’s price. At press time, the virtual asset was trading at $2,917. 
<h2 id="b-ethereum-etf-big-crypto-players-make-bold-moves-b">Ethereum ETF: Big crypto players make bold moves&nbsp;</h2> 
Ark and 21Shares withdrawing their stake plans is also related to Grayscale, a big player in the cryptocurrency asset management industry, which decided to remove its <a href="https://thecoinrise.com/grayscale-withdraws-ether-futures-etf-application-ahead-of-sec-decision/">application for an Ether ETF</a> just three weeks before the SEC’s scheduled decision date. 
Bloomberg ETF analyst Eric Balchunas <a href="https://twitter.com/EricBalchunas/status/1789053958079619176">posted on X</a> that the update could be an attempt to fine-tune the application in response to potential feedback from the US Securities and Exchange Commission (SEC), even though no official comments have been made. 
<blockquote class="twitter-tweet" data-width="500" data-dnt="true"> 
 Hmmmm. Interesting. While it may seem like this is them getting their docs in shape based on SEC comments (which would be good news) there hasn’t been any comments. So its prob either a Hail Mary or maybe trying to give SEC one less thing to use in their rejection. Not sure (yet) <a href="https://t.co/CeQwj5ktPn">https://t.co/CeQwj5ktPn</a> 
 — Eric Balchunas (@EricBalchunas) <a href="https://twitter.com/EricBalchunas/status/1789053958079619176?ref_src=twsrc%5Etfw">May 10, 2024</a>
</blockquote> 
In September 2023, <a href="https://thecoinrise.com/ark-invest-and-21shares-to-launch-new-digital-asset-etf-suite/">ARK and 21 shares teamed up to launch a digital asset ETF</a> while waiting for the <a href="https://thecoinrise.com/sec-delays-decision-on-ark-21sharess-spot-bitcoin-etf-application/">SEC’s decision on the spot Bitcoin exchange-traded fund </a>that was under review. 
If approved, the digital asset ETF will trade on the Cboe BZX Exchange and offer direct exposure to Ethereum. 
<h2 id="b-sec-vs-crypto-etfs-b">SEC vs Crypto ETFs</h2> 
ARK Invest and 21Shares’ proposal is among several spot crypto ETFs being reviewed by the SEC. 
The SEC’s handling of cryptocurrency ETFs has garnered increased scrutiny, particularly after Grayscale’s successful appeal to reconsider its Bitcoin Trust. 
SEC’s apparent approach to decision-making has sparked concerns among crypto issuers as the investment company VanEck <a href="https://thecoinrise.com/sec-remains-silent-on-spot-eth-etfs-analyst-weighs-in/">approval for Ethereum (ETH) ETFs</a> was delayed. 
TheCoinRise media reported recently that US President Joe Biden’s administration has <a href="https://thecoinrise.com/biden-administration-supports-secs-actions-against-crypto-firms/">strongly opposed a joint resolution on crypto policy at the SEC,</a> signaling a possible veto if it reaches the President’s desk. 
The post <a href="https://thecoinrise.com/ethereum-etf-proposal-ark-and-21shares-abandon-staking-plans/">Ethereum ETF Proposal: ARK and 21Shares Abandon Staking Plans</a> appeared first on <a href="https://thecoinrise.com">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

Ethereum ETF Proposal: ARK and 21Shares Abandon Staking Plans

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