ARK Invest and 21Shares Amend Ethereum ETF Proposal, Exclude Staking Feature
ARK Invest and 21Shares have revised their proposal for an Ethereum-based exchange-traded fund (ETF), opting to exclude the cryptocurrency staking feature from their plan. This adjustment was made following productive negotiations with the U.S. Securities and Exchange Commission (SEC), which have led the firms to adopt a cash creation and redemption model for the ETF.
Initially, the firms had considered an in-kind redemption approach, where payments were made non-monetarily using Ether. However, the revised strategy now involves purchasing Ether in amounts corresponding to the order placed and depositing it with a custodian, which will facilitate the creation of ETF shares.
In their latest regulatory filing on May 10, the section that previously suggested 21Shares would engage third-party providers to stake a portion of the
First found on: Cryptonews from Coinatory
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