Ethereum
Cathie Wood on Ethereum ETF approvals
ARK 21Shares changes ETH ETF spot deposit: Cathie Wood on Ethereum ETF approvals
In January, ARK Invest partnered with 21Shares to offer a spot bitcoin ETF, which trades under the name ARKB. The ETF was hugely successful, attracting several billion dollars of investment. However, the duo is not satisfied with just a place in a Bitcoin ETF. They also applied for a place in the Ethereum ETF, which is currently under review by the SEC.
Don’t miss:
Although they have not made a formal comment, ARK and 21Shares have updated their filing for the Ethereum spot ETF application. The update removed a small clause relating to staking. Originally, companies were looking to invest in the ETH they held, which would have been considered income from the fund. “Sponsor may, from time to time, stake a portion of the Trust’s assets through one or more trusted staking providers,” the clause states.
However, the update excluded this clause. Although they kept all other Ethereum-specific clauses, the change raised some eyebrows. Eric Balchunas is an ETF analyst for Bloomberg and in a post onhe said: “While it may appear that they are the ones putting their documents together based on comments from the SEC (which would be good news), there have been no comments. So this is probably a Hail Mary or maybe trying to give the SEC one less thing to use in their rejection. I’m not sure (yet).”
According to Balchunas, the SEC did not incentivize ARK and 21Shares to make the change. It is therefore, according to him, a sort of preventive action aimed at giving their application a greater probability of acceptance.
Trend: 1 in 4 Americans own a share of Bitcoin according to the NASDAQ, How much would $10 get you today??
The staking issue has been seen by some as an obstacle to the potential approval of Ethereum spot ETFs. The newness of the system could cause additional delays in the SEC’s already lengthy decision-making process. So, by excluding him from the application, ARK could improve its chances of approval. However, this comes at the cost of a less attractive ETF, as the staking rewards would not be earned.
The SEC has already delayed decisions on several applications. As it stands, the final date for a decision on the VanEck ETH ETF application is May 23, followed by ARK 21Shares on May 24.
“Our chances of approval remain the same: slim to none,” Balchunas said in a statement. post on.
Cathie Wood is the CEO of ARK Invest and is known to be extremely bullish on cryptocurrency. However, even she acknowledged that the crypto-ETF market may not see much more growth. “We would be surprised to see anything other than Bitcoin and Ether approved by the [U.S. Securities and Exchange Commission]” she said in an interview.
The story continues
The case for a spot Ethereum ETF is weakening and the SEC has not often spoken out on the subject. While it is certainly possible that ETFs could be approved in late 2024 or 2025, it seems unlikely that this will happen anytime soon.
Read next:
crypto digital assets
“ACTIVE INVESTORS’ SECRET WEAPON” Boost your stock market game with the #1 “news and everything else” trading tool: Benzinga Pro – Click here to start your 14-day trial now!
Get the latest stock analysis from Benzinga?
This item ARK 21Shares changes ETH ETF spot deposit: Cathie Wood on Ethereum ETF approvals originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.