ARK Invest, led by Cathie Wood, and 21Shares have decided to exclude a staking component from their proposed spot ether exchange-traded fund (ETF). The updated filing, submitted on Friday, no longer includes language regarding the staking of the trust’s assets through trusted Staking Providers.
In a previous filing, Ark Invest/21 Shares had outlined plans to potentially stake a portion of the Trust’s assets. However, this specific provision was omitted from the latest submission.
Bloomberg ETF analyst Eric Balchunas commented on the significance of this change, suggesting that it could be interpreted in various ways. Balchunas noted that while it might signal efforts to address potential concerns raised by the Securities and Exchange Commission (SEC), there have been no official comments from the SEC yet. As such, the removal of the staking component could be viewed as a proactive measure to streamline the filing process or to mitigate potential grounds for rejection.
Despite the amendment, representatives from ARK Invest and 21Shares have not provided immediate comment on the decision.
ARK Invest and 21Shares initially applied for the spot ether ETF in September, with plans to offer direct exposure to ether through trading on the Cboe BZX Exchange, utilizing the CME CF Ether-Dollar Reference Rate – New York Variant.
The trust is sponsored by 21Shares, with Delaware Trust Company serving as the trustee and Coinbase Custody Trust Company acting as the ether custodian. ARK Investment Management will serve as the sub-adviser of the trust, providing assistance in marketing the Shares.
Optimism regarding the SEC’s approval of spot ether ETFs has diminished in recent months. Bloomberg ETF analyst Eric Balchunas revised his estimate of the likelihood of approval by late May from approximately 70% to 25%.