Bit Digital expressed optimism around the upcoming launch of ethereum (eth) spot ETFs, but drew attention to the lack of participation from funds in x.com/BitDigital_BTBT/status/1813201891662176386″>July 16th.
The firm said it is “excited about the increased normalization and adoption” of ethereum and the technology’s potential to reshape the financial system. Bit Digital also said ETFs could be a major catalyst for eth’s price in the coming months.
However, Bit Digital drew attention to the funding limitations, noting:
“It is important to note that eth ETFs will not be able to stake and benefit from the full potential of eth.”
Bit Digital referred to its website, which identifies the company as the only publicly traded bitcoin miner that stakes ethereum. The company spends btc mining rewards into eth, which it stakes. It then redistributes the eth staking rewards to aggregate sustainable bitcoin miners, completing the cycle.
Bit Digital also claims to be among the largest eth holders of any Nasdaq-listed company, with over 29,000 eth (USD)100.4 million).
The company said its BTBT shares provide “exposure to the smart contract economy.”
ETF applicants abandoned staking
Several eth spot ETF applicants attempted to accommodate eth staking into their proposals in February. Their intention was to treat staking rewards as income for the fund.
However, the applicants removed staking plans from their applications to comply with the approval requirements set by the SEC around May. The spot eth ETFs have since obtained initial approval with no concessions for staking.
Bloomberg ETF analyst Eric Balchans believes the SEC will grant issuers permission to launch the funds on July 22, allowing the funds to begin trading on July 23.
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Assad Jafri
A passionate journalist since the 2011 Arab Spring in Yemen, AJ has honed his skills around the world for over a decade. Specializing in financial journalism, he now focuses on cryptocurrency reporting.
