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ETH ETF Issuers Drop Staking

ETF issuers won't be staking their ETH according to new filings.
David C David C May 22, 20241 min read
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ETH ETF Issuers Drop Staking

Potential spot ETH ETF issuers are assuring the SEC that they will not engage in staking, removing provisions from updated filings in an effort to squeeze through approvals of their applications.

What's the Scoop?

  • No staking now: Fidelity, Franklin Templeton, Ark Invest, Invesco, and VanEck ETFs have all updated their filings to say they won't stake ETH for yield. Similar clauses have been added by Nasdaq for iShares Ethereum Trust and by NYSE Arca for Grayscale's Ethereum Mini Trust and the Bitwise Ethereum ETF.
  • Shift in plans for tomorrow’s decision: The removal of staking was seen as a likely capitulation, but was obviously a concession that investment firms were willing to make to clear the path for SEC approval.

Bankless Take:

The SEC's campaign against Ethereum will certainly take a hit if spot ETF applications are approved, but it's clear that the SEC will continue fight in any arena where they foresee the slightest chance of a legal win.

Investment firms realize that they're signing up for an uphill battle with this administration's regulators and staking appears to remain a contentious topic with fund managers like Cathie Wood recognizing it as a regulatory sticking point.

David C

Written by David C

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David is a writer/analyst at Bankless. Prior to joining Bankless, he worked for a series of early-stage crypto startups and on grants from the Ethereum, Solana, and Urbit Foundations. He graduated from Skidmore College in New York. He currently lives in the Midwest and enjoys NFTs, but no longer participates in them.

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