🚀 ARK Invest and 21Shares have changed their strategy for ETFs on Ethereum (ETH), abandoning the possibility of staking. Companies will now stick to the cash origination and repayment model.

🔄 This is a significant strategic shift from the previously discussed in-kind redemption model, which used in-kind payouts such as Ether.

💡 Under the new model, ARK Invest and 21Shares will buy Ether corresponding to the order amount and deposit it as collateral with the custodian, making it easier to create ETF shares.

📝 The filing, filed May 10, removed a section indicating that 21Shares would stake a portion of the fund's assets through third-party providers.

🔎 Discussion includes issues such as potential losses due to staking penalties, temporary unavailability of funds during collateral and failure to collateralize, and potential impact on the price of Ethereum.

👇 Share your thoughts in the comments!