ARK and 21Shares’ Updated Ethereum ETF Proposal Excludes Staking

ARK Invest and 21Shares have tweaked their application for a spot Ethereum exchange-traded fund (ETF), removing a section that discussed staking the fund’s assets.

This update comes in a revised filing submitted on May 10. Previously, the proposal mentioned 21Shares potentially staking a portion of the fund’s Ether (ETH) holdings through third-party providers.

While the staking plans are gone, the application still acknowledges broader concerns related to staking, such as:

• Potential losses from penalties (slashing)
• Limited access to funds while staked
• Staking’s impact on the price of Ethereum

The reason for this change remains unclear. Bloomberg ETF analyst Eric Balchunas suggests it could be an attempt to address potential concerns from the US Securities and Exchange Commission (SEC), even though no official comments have been made.

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