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Ark 21Shares removes staking process, Ethereum spot ETF makes a final push before deadline

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Ark 21Shares removes staking process, Ethereum spot ETF makes a final push before deadline

Ark and 21 Shares' Ethereum spot ETF submitted an update on 5/10, removing the Ethereum staking process. However, Bloomberg ETF analyst Eric Balchunas believes that there have been no comments heard so far, suggesting this could be an attempt to eliminate a reason for the SEC to reject them. The market is generally pessimistic about the approval of an Ethereum spot ETF, with 10X Research estimating that Ether may correct to $2,500.

Ethereum spot ETF nears significant deadline, will ETH correct to $2,500?

Delete Ethereum Staking, Fight for Approval

Bloomberg analyst Eric Balchunas believes that this adjustment may have been made based on comments from the SEC, which could be a positive development. However, there have been no official comments heard so far, perhaps this is just an attempt to reduce a reason for the SEC to reject them.

ARK and 21Shares submitted an application for an Ethereum spot ETF in September 2023. The fund aims to provide direct investment in Ethereum and, if approved, will be traded on the Cboe BZX exchange. According to their previously submitted documents, the fund plans to stake the received ETH and intends to classify the resulting profits as fund income. In addition, Fidelity also added staking functionality in their application submitted in March.

Wall Street to Stake ETH? Fidelity Investment revises ETF application, looking to open up Ethereum staking

However, the debate over whether Ethereum is a security and the issue of staking has always been a focal point of contention.

Ethereum Spot ETF Approaching Important Deadline

The SEC has been delaying its decision on the Ethereum spot ETF. Fox Business reporter Eleanor Terrett once quoted speculation from sources:

  • SEC Chairman Gary Gensler believes he has soothed the entire industry by approving a Bitcoin spot ETF.
  • Influential anti-crypto politicians, such as Senator Elizabeth Warren, are angry about the SEC's approval of a Bitcoin spot ETF and are rallying against the same happening for Ethereum.

The likelihood of the SEC approving an Ethereum spot ETF before 5/23 is decreasing

The next approval deadlines are for the VanEck Ethereum ETF on 5/23 and the Ark 21Shares Ethereum ETF on 5/24.

Here is a compilation of data from various issuers, please note that some announcements do not specify exact review deadlines, so an estimation of 45 days from the federal announcement date is used.