In their recently amended SEC S-1 document, 21Shares and ARK Invest have agreed to exclude the staking feature from their proposed spot ETH exchange-traded fund as per the filling . The revision addresses SEC concerns about staking, which places the asset in the security.
Previously, ARK Invest and 21Shares had included an option to stake Ethereum in their filing documents, thus allowing fund managers to make profits above the management fees. Nevertheless, it was considered a trial rather than an acceptance of approval.
SEC clarified that staking would be considered a security, which would not bode well for the spot ETH ETFs. The SEC reportedly plans to hard-press prominent traders such as Peter Brandt for the staking scheme.
ARK Invest’s latest amendment has hinted that the SEC and the spot ETH ETF applicants may be in talks. According to experts, those apps are being improved to meet SEC requirements, however, 21Shares and ARK Find have yet to share a reason for the changes with the public.
Earlier this week, Grayscale abandoned its proposals for an Ethereum futures ETF, to avoid a possible legal rejection.
