This is Why Investment Companies May Withdraw Their Applications for Ethereum

Investment companies CoinShares and Valkyrie may withdraw their Ethereum application due to SEC demands.

According to the claims of FOX Business reporter Eleanor Terrett, CoinShares and Valkyrie, which have issued a spot ETF for Bitcoin, will not apply for a spot Ethereum ETF because staking is not allowed.

Fidelity Investments updated its application to the SEC the other day and emphasized that the ETHs held in the fund will not be used for staking purposes. According to Bloomberg analysts, this proved that the SEC does not allow staking.

According to Terrett, CoinShares and Valkyrie think that spot Ethereum ETFs will not add value to investors unless there is staking.

There are a total of nine issuers attempting to establish a spot Ethereum ETF in the US.