ARK Invest and 21Shares have removed the staking feature from their Ethereum (ETH) ETF offering. 📉
• After successful negotiations with the US securities regulator, the companies moved to a cash origination and redemption model.
• Instead of the previous in-kind repayment model where Ether was used, ARK Invest and 21Shares will now purchase Ether corresponding to the order amount and deposit it as collateral.
• A recent filing, filed May 10, removed a section indicating that 21Shares would stake a portion of the fund's assets through third-party providers.
• Despite the promise of Ethereum ETFs, the Securities and Exchange Commission (SEC) is experiencing delays in making decisions on various Ethereum ETF proposals.
• Ethereum ETF application decisions have significant implications for the cryptocurrency investment landscape. They can increase institutional participation and acceptance of Ethereum as an investment asset.