BlackRock, Grayscale, Bitwise File Updated 19B Forms in Rush for Ethereum ETF

As a researcher with a background in cryptocurrencies and securities regulation, I have closely followed the recent developments regarding the proposed spot ether ETFs from BlackRock, Grayscale, Bitwise, Fidelity, VanEck, Franklin Templeton, Invesco Galaxy, and ARK 21Shares.

On Wednesday, I came across filings submitted by BlackRock, Grayscale, and Bitwise to the U.S. Securities and Exchange Commission (SEC) for amended proposals of their respective spot Ether exchange-traded funds (ETFs).

As a researcher examining the recent developments, I’ve observed that all the revised versions have eliminated the options for staking Ether. Some commentators suggest that this removal could potentially ease regulatory challenges.

Locking up certain cryptocurrencies for an assigned term is called staking, which plays a crucial role in powering the functionality of a blockchain. In return, stakeholders receive compensation as remuneration, making it a popular source of passive income within the crypto community.

Based on the information I’ve gathered from Lido, the leading ethereum staking service as of Thursday, the estimated annualized yield for ether staking hovered around the 3% mark.

All proposed ethereum ETFs have submitted revised applications in anticipation of a decision from the regulatory body, which is predicted to be announced on Thursday.

Earlier this week, Fidelity adjusted its S-1 forms for its Ethereum ETF, abandoning plans for staking. Following suit were VanEck, Franklin Templeton, Invesco Galaxy, and ARK 21Shares, who also made similar filings to eliminate staking from their respective Ethereum ETF applications. Notably, Hashdex is yet to make an amendment regarding this matter in its own Ethereum ETF filing.

On Monday, Eric Balchunas and James Seyffart of Bloomberg, known for their influential analysis, raised their approval probability assessment from 25% to 75%, triggering a significant market surge. As a result, Ether experienced a rise of more than 17%, while Bitcoin regained the $71,000 mark for the first time since early April.

Observers have characterized the SEC’s recent announcement as a surprising shift in stance, as it was previously reported that they weren’t considering approving an ether ETF. In an interview with Unchained, Seyffart indicated that the matter had taken on a political dimension, with the decision seemingly originating “from above,” possibly referring to President Biden.