Investment Firms Amend Ethereum ETF Proposals Amid Pending SEC Approval

By: Isha Das

Investment management firms Ark Invest and 21 Shares have made noteworthy changes to their proposed Ethereum exchange-traded funds ( ETFs). Notably, the new filing no longer includes plans for staking, a move that is considered somewhat unusual and has led to speculation regarding the reasons and potential implications.

Previously, 21 Shares had intended to stake a part of the fund’s assets via third-party providers, and use received Ethereum as a form of staking reward. This approach was outlined in the firm's earlier filing from February 7. However, the updated proposal revealed on May 10 doesn't mention it.

Meanwhile, the Securities and Exchange Commission (SEC) is expected to decide on a variety of spot Ethereum ETF proposals within the next couple of weeks. Irrespective of the changes, odds for approval appear to be low, with Polymarket showing only a 10% chance for Ethereum ETFs getting the green light.

It's worth noting that investment firms such as Franklin Templeton and Fidelity incorporate similar proposals around Ethereum staking in their filings. These adjustments show the evolving strategies investment firms are employing to gain approval for their Ethereum ETF proposals.