ARK Invest and 21Shares address the cash creation and redemption process in their latest Ethereum ETF filing.
Cathie Wood’s ARK Invest and 21Shares’ spot Ethereum exchange-traded fund proposal will only have a process to deliver cash in the creation and redemption process, according to a recent regulatory filing.
“Approved participants will deliver only cash for the issuance of shares and will receive only cash upon redemption of shares,” according to the filing posted Wednesday.
The process of creating and redeeming stocks in an exchange traded fund was previously center Meeting between the Securities and Exchange Commission and the issuer seeking to launch a spot Bitcoin ETF. The SEC is likely to favor a cash model, which differs from an in-kind model, in which issuers must move assets out of storage, sell them immediately, and then return cash to investors. Spot models, which give managers greater flexibility in portfolio management, have been favored by some asset firms, including: black stone We are in the process of receiving approval for a spot Bitcoin ETF.
Bloomberg Intelligence Analyst Eric Balchunas noted the changes in the Ark21Shares Ethereum ETF on Wednesday.
“Here we go again: ARK/21Shares just filed an amended S-1 for its spot Ether ETF. It appears to have been updated only with cash generation and other things consistent with the recently approved spot btc etf prospectus,” X Said in an article posted on
Staking Component
The updated file also includes new staking components.
“(Sponsors may, from time to time, stake a portion of the Trust’s assets through one or more trusted staking providers. Sponsors generally expect to stake Ether tokens from the Trust’s cold vault balance,” the filing states. according to “In return for any staking activity in which the Trust may engage, the Trust will receive certain staking rewards in Ether tokens, which may be treated as income of the Trust. The amount of ETH a trust may receive as compensation for staking activities may vary. Pretty.”
Scott Johnsson of Van Buren Capital put the staking language in parentheses, which he said was a way for issuers to start a conversation about potential staking.
“For those unfamiliar with the curiosities of legal drafting, what you mean by adding brackets around a new block language like this is ‘We’re putting it here because we want to add this… but let’s have a conversation.’ ‘It can happen and it’s not important for the application,’ Johnsson said. post.
proposal
Ark Invest and 21 Shares applied About Spot Ether ETF in September Provides direct exposure to and trading of Ether on the Cboe BZX exchange using the CME CF Ether-Dollar Reference Rate – New York Variant.
According to the first filing, 21Shares is the trust’s sponsor, Delaware Trust Company is its trustee, and Coinbase Custody Trust Company is its custodian. ARK Investment Management is a sub-adviser to the Trust and will provide assistance in marketing the shares.
The SEC was the last to postpone its schedule. decision It requested public comment on the ETF in December. The agency also postponed the deadline for another spot Ethereum ETF offering. grayscale Last month and my investment in the Invesco Galaxy Ethereum ETF tuesday.
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