Ark Invest and 21shares Amend Spot Ether ETF Filing, Now More Aligned With SEC Preferences
Ark Invest and 21Shares have strategically revised their filing for a spot ether ETF to align with the U.S. Securities and Exchange Commission's (SEC) recent approval criteria for spot bitcoin ETFs. The updated filing introduces a cash creation and redemption mechanism, in line with the SEC's preference.
Senior ETF analyst Eric Balchunas highlighted the move on X, noting the shift towards "only cash creations" to bring it in line with the approved spot bitcoin ETF prospectus.
This adaptation not only emphasizes cash transactions but also introduces staking ether through third-party providers, showcasing a forward-looking strategy to leverage Ethereum's features for additional income.
The emphasis on cash transactions signifies a departure from the in-kind model, aligning with the SEC's guidelines for transparency and security. The amendment reflects a proactive approach by Ark Invest and 21Shares to adhere to regulatory preferences, adapting their initial proposal from September 2023 for a spot ether ETF on the Cboe BZX Exchange.
