Ark Invest And 21shares Refine Ether ETF Filing For Enhanced Security
Cathie Wood’s Ark Invest, in collaboration with 21shares, has amended its filing for a spot ether exchange-traded fund (ETF), aligning with the SEC’s regulatory framework.
The updated S-1 registration introduces a cash creation and redemption mechanism, reflecting the SEC’s recent criteria for spot bitcoin ETFs. Ark Invest and 21shares aim to enhance transparency and security in transactions with this strategic move. The filing also unveils a new aspect of staking ether, allowing the fund to earn rewards by locking up a portion of its holdings through trusted third-party staking providers.
Ark Invest and 21shares demonstrate a forward-looking approach, leveraging the unique features of the Ethereum blockchain to generate additional income for the ETF. The focus on cash transactions deviates from the in-kind model, emphasizing compliance with the SEC’s guidelines. The updated filing signifies a commitment to navigating the evolving regulatory landscape while exploring innovative opportunities within the cryptocurrency market.
Clever Robot News Desk 12th February 2024
