BlackRock Excludes Staking from Spot Ethereum ETF Application
Date: 2024-05-24 Author: Oliver Abernathy Categories: BUSINESS
BlackRock has amended its registration filing for a spot Ethereum ETF by filing an updated Form 19b-4 with the US Securities and Exchange Commission (SEC) via the Nasdaq exchange. The main change was the exclusion of staking from the application.
Confirmation of information: Analysts react
Bloomberg Intelligence analyst James Seyffart confirmed this information. At the time of writing, BlackRock has not made any official comments regarding the changes. However, this action did not come as a surprise to some experts.
Difference in classification: Expert opinion
Previously, Galaxy Research head Alex Thorne suggested that staked Ethereum could be classified as securities, while regular coins would be treated as commodities. This difference could be a reason to exclude staking from the application.
Trend among issuers: BlackRock is not the only one
BlackRock is not the only company to remove staking from its application. Ark Invest and 21Shares did the same, indicating a growing trend among ETF issuers.
Waiting for a decision: Timing and probabilities
The SEC is scheduled to announce its decision on spot Ethereum ETFs on May 23, 2024. Experts estimate the probability of approval of the new category of exchange-traded funds at 75%. However, some doubts remain about the risks of such products.
Skeptical Opinions: Risks and Control
BitMEX exchange co-founder Arthur Hayes expressed doubts about such products, noting that the banking sector could use them to control the cryptocurrency industry. This highlights existing risks and potential market implications.
BlackRock and other companies continue to adapt to changing regulatory requirements by eliminating staking from applications for spot Ethereum ETFs. The anticipation of the SEC's decision is causing excitement in the market, and further steps by regulators will be closely monitored by all stakeholders.
