{"id":10529,"date":"2024-02-08T11:37:55","date_gmt":"2024-02-08T09:37:55","guid":{"rendered":"https:\/\/forklog.com\/en\/ark-invest-proposes-boosting-ethereum-etf-returns-through-staking\/"},"modified":"2024-02-08T11:37:55","modified_gmt":"2024-02-08T09:37:55","slug":"ark-invest-proposes-boosting-ethereum-etf-returns-through-staking","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/ark-invest-proposes-boosting-ethereum-etf-returns-through-staking\/","title":{"rendered":"ARK Invest Proposes Boosting Ethereum ETF Returns Through Staking"},"content":{"rendered":"<div class=\"wp-block-text-wrappers-keypoints article_keypoints\">\n<ul class=\"wp-block-list\">\n<li>ARK Invest and 21Shares have proposed that the SEC approve the use of staking in a spot Ethereum ETF.<\/li>\n<li>The options market indicates increased expectations for product approval in May and growing uncertainty due to the Fed&#8217;s policies.<\/li>\n<\/ul>\n<\/div>\n<p>On February 7, ARK Invest and 21Shares submitted an <a href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1992508\/000121390024010722\/fs12024a1_ark21shares.htm\">updated application<\/a> for the launch of a spot Ethereum ETF. The companies proposed placing coins from the trust into staking to generate additional income.<\/p>\n<p>The document stipulates the use of only cash for the creation and redemption of ETF shares, similar to how it is implemented in bitcoin-based instruments.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">HERE WE GO AGAIN: ARK\/21Shares has just filed an amended S-1 for their spot Ether ETF, looks like they updated to be only cash creations and some other things that bring it in line w the recently approved spot btc etf prospectus.. <a href=\"https:\/\/t.co\/clN2oZmA6I\">pic.twitter.com\/clN2oZmA6I<\/a><\/p>\n<p>\u2014 Eric Balchunas (@EricBalchunas) <a href=\"https:\/\/twitter.com\/EricBalchunas\/status\/1755268354355368379?ref_src=twsrc%5Etfw\">February 7, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>This cash model requires issuers to sell product assets and then transfer cash to the investor. An alternative natural scheme offers the manager greater flexibility in portfolio management.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cThe issuer may [\u2026] place part of the Trust&#8217;s assets through one or more reliable service providers. [\u2026] The fund will receive certain rewards for placing Ethereum, which may be considered its income. The number of coins received in this way [\u2026] can vary significantly,\u201d<\/em> the document states.<\/p>\n<\/blockquote>\n<p>Attorney Scott Johnsson noted that the aforementioned passage was presented in square brackets. He saw this as a way to initiate a discussion on the use of staking.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">For those not familiar with the curiosities of legal drafting, the implication of adding brackets around new block language like this is saying: &#8220;we&#8217;re putting this here, because we want to add it\u2026 but let&#8217;s have the conversation because this might come across as inflammatory\u2026<\/p>\n<p>\u2014 Scott Johnsson (@SGJohnsson) <a href=\"https:\/\/twitter.com\/SGJohnsson\/status\/1755276919589720080?ref_src=twsrc%5Etfw\">February 7, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cThey wanted to say: \u2018We\u2019re putting this here because we want to add it\u2026 but let\u2019s continue the conversation,\u2019\u201d<\/em> Johnsson wrote.<\/p>\n<\/blockquote>\n<h2 class=\"wp-block-heading\"><strong>Will the ETF be approved in May?<\/strong><\/h2>\n<p><span data-descr=\"U.S. Securities and Exchange Commission\" class=\"old_tooltip\">SEC<\/span> may approve spot Ethereum ETFs in May, as suggested by the state of the options market. This was reported to <a href=\"https:\/\/www.theblock.co\/post\/276407\/ether-options-open-interest-indicates-bullish-sentiment-about-potential-may-spot-eth-etf-approval-analyst-says\">The Block<\/a> by Bitfinex&#8217;s head of derivatives, Jag Kooner.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cTraders are adjusting their contracts with May 23 in mind,\u201d<\/em> Kooner told The Block.<\/p>\n<\/blockquote>\n<p>The mentioned date represents the first final deadline for decision-making on applications for the launch of the instrument from VanEck and ARK\/21Shares.<\/p>\n<p>The specialist noted a significant increase in open interest (OI) in call options with expirations in March, April, and May.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cThe put-call ratio is heavily skewed towards the latter at 0.31,\u201d<\/em> Kooner explained.<\/p>\n<\/blockquote>\n<p>The expert clarified that other indicators suggest a more cautious stance among traders, which may indicate product approval not before 2025 or 2026.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cThe classification of Ethereum as a security or a commodity is a major factor influencing these forecasts and the reaction of the derivatives market,\u201d<\/em> he explained.<\/p>\n<\/blockquote>\n<h2 class=\"wp-block-heading\"><strong>Price Benchmarks<\/strong><\/h2>\n<p>Kooner noted that up to February, the highest OI was concentrated in contracts with expirations in the $2400-2450 range, and the <span data-descr=\"the price of the underlying asset at which option buyers incur the maximum loss and the seller, usually a market maker, gains the maximum profit\" class=\"old_tooltip\">max pain<\/span> price is concentrated around $2300.<\/p>\n<p>For options maturing in April and beyond, the latter figure is $2400, while the highest open interest is at $2900.<\/p>\n<p>According to the specialist, an anomaly is observed in March: the max pain price is near $2000, and OI is distributed between $2000 and $3000.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cTraders are speculating on short-term and long-term growth but are taking a more cautious approach in the near term. This could be heavily influenced by recent statements from the <span data-descr=\"U.S. Federal Reserve System\" class=\"old_tooltip\">Fed<\/span> that it is not considering rate cuts until May,\u201d<\/em> Kooner explained.<\/p>\n<\/blockquote>\n<h2 class=\"wp-block-heading\"><strong>What Do Experts Think?<\/strong><\/h2>\n<p>In recent months, the SEC has postponed decisions on applications for the launch of spot Ethereum ETFs from several companies, including Grayscale, BlackRock, and Invesco with Galaxy.<\/p>\n<p>Some experts believe the regulator will register the products in May. Grayscale suggested the agency might make a positive decision in the summer.<\/p>\n<p>In December, SEC Chairman Gary Gensler, commenting on the agency&#8217;s change of stance regarding spot bitcoin funds, cited \u201ccourt decisions\u201d as one of the reasons. Commissioner Hester Peirce expressed confidence that such processes would not be required in the case of Ethereum.<\/p>\n<p>However, several analysts doubt the swift registration of spot ETH ETFs for various reasons.<\/p>\n<p>Back in December, BlackRock CEO Larry Fink <a href=\"https:\/\/forklog.com\/en\/news\/blackrock-ceo-recognizes-value-in-spot-ethereum-etf\">stated<\/a> that he \u201csees value\u201d in such Ethereum products, calling them a step towards tokenization.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>ARK Invest and 21Shares have proposed that the SEC approve the use of staking in a spot Ethereum ETF. The options market indicates increased expectations for product approval in May and growing uncertainty due to the Fed&#8217;s policies. On February 7, ARK Invest and 21Shares submitted an updated application for the launch of a spot [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10528,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1372,1218,1289,569,46,1150,36],"class_list":["post-10529","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-21shares","tag-ark-invest","tag-cryptocurrency-staking","tag-etf","tag-ethereum","tag-news-plus","tag-regulation"],"aioseo_notices":[],"amp_enabled":true,"views":"19","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/10529","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=10529"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/10529\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/10528"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=10529"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=10529"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=10529"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}