ARK Invest and 21Shares have revised their proposal for an Ethereum-based Exchange-Traded Fund (ETF), strategically removing the staking component. This modification is likely a response to potential feedback from the U.S. Securities and Exchange Commission (SEC), aiming to streamline the approval process. Initially, the proposal included plans for 21Shares to engage in staking Ethereum, potentially generating returns for the fund through these activities. However, the latest amendment has stripped these plans, possibly to avoid complexities or objections that could arise from the regulatory body. This adjustment reflects a cautious approach to comply with regulatory standards while still seeking to innovate in the cryptocurrency investment space.
The ETF, if approved, would mark a significant milestone by providing investors direct exposure to Ethereum without the need for direct ownership of the cryptocurrency. It highlights the evolving landscape of cryptocurrency investments and the increasing attempts to align these innovative financial products with regulatory requirements.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
