Ark and 21Shares Refine Ethereum ETF Application

By: Eva Baxter

Ark Invest and 21Shares have revised their joint proposal for a spot Ethereum exchange-traded fund (ETF), focusing on cash creations and redemptions. This follows a Feb. 7 S-1 filing in the U.S.

The revised application denies a provision for in-kind creations and redemptions involving Ethereum (ETH), a factor believed to be instrumental in the recent approvals of spot Bitcoin ETFs. The suggestion is that regulatory restrictions make crypto transactions difficult for participants to handle.

The filing also hinted at Ethereum staking as part of the issuer's operations, though this provision remains uncertain and is speculated to be disallowed by the SEC.

This adjustment seems to be a positive development for ETH ETFs, as multiple proposals have their decisions delayed by the SEC. However, the filing emphasises the SEC's upcoming May 23 verdict on a spot Ethereum ETF proposed by VanEck likely affecting similar funds.