Key Points:
Six spot Ethereum ETF applicants, including Fidelity and ARK Invest, amended filings to exclude staking provisions after SEC feedback.
Experts believe removing staking boosts Ethereum’s legitimacy and staking returns.
Six proposed spot Ethereum ETF applicants have updated filings in response to comments from the Securities and Exchange Commission in the eleventh hour.
Read more: What Is A Spot Ethereum ETF? How Important Is The New Ether ETF?
Spot Ethereum ETF Applicants Are Actively Preparing for SEC Approval
In total, the spot Ethereum ETF applicants include VanEck, Fidelity, Franklin Templeton, ARK Invest, Grayscale, and Invesco Galaxy. Such amendments filed with the Cboe exchange include the changes in response to the SEC's concerns and notably remove staking on the Ethereum blockchain for possible ETFs.
Fidelity, Franklin Templeton, and ARK 21Shares specifically removed clauses on the validation of Ethereum proof-of-stake from their proposals. In its revised filing, Fidelity emphasized that neither the Trust nor its related parties would stake in the cryptocurrency. Grayscale also made the same statement in its proxy, removing the staking provisions.
Industry Experts Praise Removal of Staking Provisions
Such changes would be made to satisfy SEC requirements. Adam Cochran, a partner at Cinneamhain Ventures, and Ryan Berckmans, an investor in Ethereum, both noted that removing staking could help the overall Ethereum ecosystem by increasing the staking returns and legitimacy of Ethereum without adding risks associated with an ETF.
The Cboe exchange posted these revised 19b-4 filings in a 25-minute window on May 21, according to Bloomberg ETF analyst James Seyffart. While the revised filings are a step toward launching, the ETFs still cannot launch until the SEC also approves the corresponding S-1 registration statements. Seyffart noted further that the road to the approval remains long, with revisions still needed for the S-1 forms.
Although the 19b-4 forms might get approved as soon as Thursday, coinciding with VanEck and Cboe's deadline, the SEC's position on staking has led to strategic changes by the applicants for the spot Ethereum ETF. According to Bloomberg ETF analyst Eric Balchunas, the SEC's aversion to allowing staking in ETFs is due to political reasons, pointing out a complex regulatory environment for these financial instruments.
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