ARK Invest Removes Staking Feature From Its Ethereum Spot ETF Filing

ARK Invest and 21Shares have amended their S-1 form for the proposed ethereum spot exchange-traded fund (ETF) by removing the betting component, as shown by to presentation dated May 10.

In February, the two companies updated their presentation with the option to stake ethereum, in addition to cash-only redemption. Gambling is considered a good way for fund managers to profit from large amounts of cryptocurrencies that ETFs can be worth more than simply earning management fees.

However, at the time, experts suggested that ARK Invest betting The proposal for ethereum was more of a “probe” to test the SEC's response than a confident expectation that it would be approved by the securities agency.

The Securities and Exchange Commission (SEC) has indicated that staking could classify the asset as a security, which is not desirable for ethereum spot ETFs. Last year, the SEC fined Kraken and demanded a cessation of its betting services.

Legendary trader Peter Brandt said in a recent post on x that the SEC going to crack down on gambling.

<blockquote class="twitter-tweet” data-width=”500″ data-dnt=”true”>

If the crypto community is upset about the twitter.com/SECGov?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener noreferrer”>@SECGov treatment of twitter.com/search?q=%24XRP&src=ctag&ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener noreferrer”>$XRP, twitter.com/search?q=%24ETH&src=ctag&ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener noreferrer”>$eth et al as values,

Prediction:
Wait until twitter.com/USOCC?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener noreferrer”>@USOCC twitter.com/SECGov?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener noreferrer”>@SECGov twitter.com/USTreasury?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener noreferrer”>@The United States Treasury make a full round attack on the bet

It's going to be a bloodbathhttps://t.co/CnXEusSAvG

—Peter Brandt (@PeterLBrandt) twitter.com/PeterLBrandt/status/1788582101383803003?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener noreferrer”>May 9, 2024

The latest amendment to ARK Invest's filing fuels speculation about ongoing discussions between the SEC and the ethereum spot ETF. applicants, suggesting that the applications are being modified to align with the SEC's preferences.

The reasons for the recent modification of ARK Invest remain undisclosed, as no official statements have been made by the parties involved.

crypto analysts they are marking May as a critical month for the future of these ethereum spot ETFs. The SEC is expected Make a decision about VanEck's presentation on May 23. The general consensus among analysts is that the submission will probably be rejected.

Earlier this week, Grayscale, the world's leading digital asset manager, withdrew its ethereum futures ETF. application, potentially to avoid sole liability for legal challenges in the event of an SEC denial.

(Updated with the ARK Invest presentation in February, the Kraken case and Peter Brandt's statement)