- Grayscale removed staking from the Ethereum ETF proposal, reflecting a broader trend.
- SEC requested amendments in ETF filings, influencing market speculation.
- Deadline approaching for ETF issuers to amend files, awaiting SEC approval.
The staking element of Grayscale Investments’ proposed spot Ethereum ETF has been removed. This change is reflected in the revised preliminary proxy statement that was filed on Tuesday for the Grayscale Ethereum (ETH) Trust. Staking through the trust was proposed in the initial filing, but it is no longer an option.
Staking components from Ethereum ETF spot applications have also been eliminated by other issuers. Staking rewards, for example, were not disclosed in Fidelity’s S-1 registration statement, which was also submitted on Tuesday.
Bloomberg ETF analyst James Seyffart had predicted this shift. He anticipated Grayscale would take down the reference to staking from their application in order to turn $ETHE into an ETH ETF.
Grayscale filed a Form 19b-4 with NYSE Arca in October with the goal of converting the Grayscale Ethereum Trust into an exchange-traded fund that would trade spot ether.
This action comes after they successfully converted the Grayscale Bitcoin Trust in January into a spot Bitcoin exchange-traded fund. The removal of staking from their proposal is consistent with a more general trend among potential Ethereum ETF issuers.
Recently, the Chicago Board Options Exchange (CBOE) and Nasdaq were prompted by the SEC to make changes to their spot ETF filings. Speculation regarding the possible approval of these financial instruments has been sparked by the SEC’s proactive involvement. Fidelity, VanEck, Invesco/Galaxy, Ark/21Shares, and Franklin Templeton are among the issuers that have revised their 19b-4 reports in response.
These changes are essential because issuers and exchanges have upcoming deadlines to update their files. S-1 forms filed by issuers must also be approved by the SEC prior to the spot ETFs’ operational day.
Thursday marks the end of the first round of applications, which were submitted by VanEck and Cboe. As a result, these developments are being closely watched by the financial community.
The elimination of staking from Grayscale’s proposed Ethereum ETF is a major change. This shift, which other issuers have also made, is a reflection of how the market and regulatory environments are changing.
Compliance with regulations is of the utmost importance, as the SEC has actively guided these amendments. With the deadlines drawing near, the financial community is eagerly awaiting the SEC’s decisions.
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