According to Odaily, many in the cryptocurrency market believe that key modifications made by issuers to the Ethereum ETF application are beneficial for the Ethereum blockchain, but not for the ETF product itself. Issuers, including Fidelity and Ark, have abandoned plans to pledge Ethereum ETFs.
Pledging has always been a sensitive issue for Ethereum as it allows holders to earn returns, sparking debates over whether the token should be considered a security regulated by US authorities. Some market participants argue that if the ETF cannot pledge its tokens, then the appeal of a spot ETF is less than directly purchasing pledgeable Ethereum.
This decision by issuers to abandon pledging plans for Ethereum ETFs could potentially impact the attractiveness of these products in the market. The debate over the regulatory status of Ethereum and the implications of pledging continue to shape the dynamics of the cryptocurrency market.
