ARK Invest and 21Shares, two prominent players in the finance and technology industries, have made significant changes to their application for an Ethereum exchange-traded fund (ETF). The revised registration statement, submitted to the U.S. Securities and Exchange Commission (SEC) on May 10th, no longer includes the option to stake a portion of the fund’s assets.

Staking, which involves locking digital assets to a proof-of-stake blockchain to support network operations and earn rewards, will no longer be a feature of the proposed ETF. Bloomberg senior ETF analyst Eric Balchunas speculates on the reasons behind this alteration, suggesting that it may be an attempt to preempt any potential objections from the SEC or a last-ditch effort to improve the chances of approval.

Balchunas previously expressed skepticism about the likelihood of the SEC approving spot Ethereum ETF applications. He believes that the odds are currently low, noting the lack of engagement and positive signs from the regulatory agency. However, he personally hopes for approval despite the unfavorable outlook.

As always, it’s important for investors to conduct thorough research and due diligence before making any high-risk investments in Bitcoin, cryptocurrencies, or digital assets. The Daily Hodl provides information and opinions but does not offer investment advice or endorse specific buying or selling decisions.