Ethereum increases after the preliminary change of the Ethereum ETF application from ARK Invest and 21shares
Ethereum increases after the preliminary change of the Ethereum ETF application from ARK Invest and 21shares
- The ETH Prize rose by ARK Invest. after changing the 21share ETF
- The change is adapted to the CASH creation and withdrawal model that resembles that of the spot bitcoin ETF.
- The introduction of ETH use in the changed submission remains uncertain until the official approval.
The native Token from Ethereum, Ether (Eth), experienced a price increase and achieved $ 2,457 before it fell back to the current price of $ 2,424 after ARK Invest and 21-shares have announced the joint spot application for an exchange-traded Ethereum Fund (ETF).
Ethereum (ETH) price diagram
The message was another positive development for the Ethereum ecosystem after the Dencun upgrade was successfully provided in the Holesky test network.
Change to the spot application to Ethereum ETFS
Ark Invest and 21Shares submitted a change in their joint application for a spot ethereum ETF and thus signaled significant updates of their approach.
The step is in accordance with the regulatory expectations and operational efficiency and reflects the preference of the SEC for cash-based methods, which can be observed in Spot-Bitcoin ETF permits.
In addition, the changed submission introduces the possibility of stake in Ethereum, whereby it is planned to pin out ether-tokens from the cold vault credit of the trust. The use could possibly generate rewards that are treated as income, but carries the risk of a loss. However, there is uncertainty about the inclusion of the use in the final proposal, as can be seen from the sections stated in brackets in the submission. James Seyffart, ETF-Analyst at Bloomberg, remains skeptical and points out that the SEC may not be allowed to stake in Spot Ethereum ETFs.
market reaction and expectations
The news that ARK Invest and 21Shares change their preliminary Ethereum ETF application has caused mixed reactions to investors and industry observers. Although this represents a positive development for spot ethereum ETFs, expectations regarding approval vary.
Since the period of the SEC is closer to a preliminary Ethereum ETF on May 23, the forecasts of the analysts differ. Polymarket reports a probability of 43 % for approval in May, while Seyffart suspects a probability of 60 %. The Standard Chartered Bank is very positive in May, in contrast to TD Cowen's expectation that there will be no approval in 2024.
Despite the uncertainty in connection with the official approval, the price increase of Ethereum indicates the optimism of investors and their interest in the possible introduction of a spot ethereum ETF. The interest groups are eagerly awaiting further developments in the ETH ETF area and observing the regulatory decisions and the industry dynamics.
Source: Coinlist.me
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