ARK and 21Shares have decided to drop their staking plans from the proposed Ethereum exchange-traded fund (ETF). This decision comes after the Securities and Exchange Commission (SEC) expressed concerns about the staking aspect of the ETF. Staking involves holding cryptocurrency in a wallet to support the network and earn rewards.
The two companies had initially included staking as a key feature of their ETF proposal, but have now decided to remove it in order to increase the chances of approval from the SEC. This move reflects the growing regulatory scrutiny surrounding cryptocurrency investments and the need for firms to comply with regulations.
Despite the removal of the staking component, ARK and 21Shares remain committed to launching the Ethereum ETF. The ETF aims to provide investors with exposure to the price of Ethereum without having to directly purchase and store the cryptocurrency.
It is important for companies in the cryptocurrency space to navigate the regulatory landscape carefully in order to ensure compliance and gain approval for their products. The decision to drop the staking plans from the ETF proposal shows that ARK and 21Shares are willing to make adjustments in order to meet regulatory requirements and bring their product to market.