Grayscale, Fidelity, Ark, etc. have successively canceled ETH pledges! SEC does not allow Ethereum spot ETF pledge?

Market expectations for the U.S. Securities and Exchange Commission (SEC) to approve the Ethereum spot ETF have risen sharply this week, including: Bloomberg ETF analysts raised the probability of approval to 75%, VanEck, Franklin’s Ethereum spot ETF has been listed at the Depository and Clearing Corporation (DTCC), and six Ethereum spot ETF applicants have submitted revised 19b-4 documents, including VanEck, Fidelity, Franklin, Ark Invest, Grayscale, Invesco Galaxy. Various good news continue to push up Ethereum and continue its upward trend.

Grayscale, Fidelity cancel ETH pledge plan

It is worth mentioning that when Grayscale applied to convert the Grayscale Ethereum Trust ETHE into an Ethereum spot ETF in October last year, it The application document proposed to investors that Ethereum can be pledged through ETHE, but Grayscale has deleted the relevant wording in the revised preliminary letter of authorization submitted on Tuesday, which means that Grayscale seems to have given up on its plan to pledge Ethereum through ETHE. Other applicants have also taken similar measures

Previously, Ark Investment/21Shares had canceled its plan to pledge Ethereum in an updated application document on the 10th. Fidelity submitted a revised S-1 application document to the SEC on Tuesday. It also shows that Fidelity has withdrawn its original plan to pledge Ethereum positions through ETFs.

Fidelity had stated in its previous application documents that it intended to pledge a portion of the trust fund assets to one or more infrastructure providers, but Fidelity made it clear in its revised S-1 application documents that it would not The Ethereum stored in the custodian is pledged.

For many Ethereum spot ETF applicants to submit revised 19b-4 documents and abandon the pledge of Ethereum, Bloomberg ETF analyst James Seyffart analyzed that: (cancellation of pledge) is the only one I can find that has A meaningful and substantial change? Removed the staking wording and added very clear wording that no one can pledge the fund's ETH, yes that was expected.

The key to being approved is the pledge?

Previously, Alex Thorn, director of research at Galaxy Digital, said that if the SEC wants to approve Ethereum spot ETFs, it may determine that ETH itself is not a security, but the pledged ETH will become securities, and the SEC will prohibit these ETFs from pledging their holdings. Some ETH.

Mark Connors, director of research at digital asset investment company 3iQ, said: In order to appease the recently frustrated SEC, the applicant for the Ethereum spot ETF document canceled the pledge wording and surrendered. We believe that the cancellation of the pledge wording is temporary. concession.

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