ARK Invest And 21Shares Change Ethereum Spot Ethereum Application Form

Ark Invest, a financial investment company and blockchain innovation. (Photo; Doc. Bitcoin EthereumNews)

JAKARTA - Recently, two leading investment companies, ARK Invest and 21Shares, have changed their S-1 form for the Ethereum spot Exchange-Trad Plan (ETF). This change caught the attention of many people because it involved removing the previously proposed staking component.

In February, ARK Invest and 21Shares updated their filing with the Ethereum staking option, in addition to cash withdrawals. Staking, which involves holding crypto for rewards, is considered a good way for fund managers to benefit from the large amount of cryptocurrency ETF can hold.

However, at the time, experts suggested that the Staking ARK Invest proposal for Ethereum was more of a probing' to test the Securities and Exchange Commission (SEC) response than a solid hope that it would be approved by the securities agency.

The SEC, which is responsible for financial market regulations in the United States, has shown that staking can classify assets as securities. This is a serious concern for ETF Ethereum spot applicants. Remember that last year, the SEC fined Kraken and asked for the termination of its staking services.

Legendary trader Peter Brandt also talked about this issue. In a recent post on platform X, Brandt said that the SEC would take firm action against staking. He highlighted the uncertainty and potential conflicts that might arise if the crypto community felt angry over SEC's treatment of assets like XRP and ETH as securities.

Recent changes to the ARK Invest app sparked speculation about ongoing discussions between the SEC and Ethereum's ETF applicants. This shows that the app is being modified to align with the SEC's preferences. Although the reasons for these changes remain kept secret, analysts agree that May is a crucial month for the future of ETF Ethereum spot.

On May 23, the SEC is expected to make a decision on VanEck's filing on the Ethereum spot ETF. The general consensus among analysts is that the submission is likely to be rejected. However, we must continue to monitor this development closely as it can significantly affect the crypto market.