Ark Revises Ethereum Spot ETF Application! Shift to cash redemption model

This site (120BtC.coM): Following the approval path of Bitcoin spot ETF, ARK Invest and 21Shares also recently revised their S-1 documents and switched to cash redemption model.

ARK 21Shares Ethereum spot ETF switches to cash mode

According to official documents, ARK Invest and 21Shares have modified the application content of the Ethereum spot ETF to the SEC, switching from physical redemption to cash. model.

Bloomberg ETF analyst Eric Balchunas said that Ark had submitted an S-1 amendment on February 7 to ensure that its application specifications were consistent with previously approved Bitcoin spot ETFs.

The pledge function may be introduced into Ethereum spot ETF

Ark and 21Shares mentioned in the document that the pledge income of Ethereum may be pledged through a trusted third-party pledge service provider to pledge part of the trust assets. . Issuers often choose to store ether in cold wallets for staking. As a trust fund that participates in staking activities, it will receive a certain amount of Ethereum staking rewards, which can be regarded as the trust fund's income. However, staking activity also comes with the risk of losing ether, including penalty mechanisms. In addition, staked ether will not be accessible for a period of time, which will create certain liquidity risk management needs for issuers.

Scott Johnsson, a partner at Van Buren Capital, pointed out that Ark specifically brackets the narrative paragraph of the pledge, which usually means that the applicant hopes that this link will be approved and is willing to have a dialogue with the regulator on this. According to Johnsson, this approach demonstrates the applicant's willingness to cooperate with the regulator and demonstrates its desire to proactively address issues that may arise. This proactive and open attitude helps build trust and increases an applicant's chances of being approved.

Bloomberg ETF analyst James Seyffart believes that basically the SEC will not allow the staking function to be introduced into Ethereum spot ETFs.

Ark and 21Shares’ narrative on staking returns

Ethereum spot ETF is not optimistic?

Previously, Bloomberg ETF analyst James Seyffart told foreign media Blockworks on January 26 that he believed that the SEC had about a 60% chance of approving all Ethereum spot ETFs in May this year; conversely, if not by May 23 Passing the test, he thinks this can only wait until 2025.

SEC’s review dates for each issuer’s Ethereum spot ETF are as follows:

• May 23: VanEck

• May 24th: ARK21Shares

• May 30th: Hashdex

• June 18th: Grayscale

• July 5th: Invesco

• August 3rd: Fidelity

• August 7th: BlackRock

However, James Seyffart expects the SEC to review all applications before May 23, similar to the approval of all Bitcoin spot ETFs on January 10 this year.

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