Vaneck, a renowned investment management firm, has made updates to its S-1 filing following the announcement by the U.S. Securities and Exchange Commission (SEC) regarding the approval of exchange-traded funds (ETFs) based on Ethereum (ETH) in cash on May 23. In the updated filing, the company clarifies that none of its affiliates, including the Trust, the Sponsor, the ETH Custodian, or any associated individual, will engage in “Staking Activities.” This move comes as ETF issuers have recently removed the staking service from their proposals to the SEC.
The filing states, “The Trust will not utilize its ETH in trading activities and, as a result, investors will not receive any staking rewards or income from staking activities. This decision to forgo potential returns from staking activities may cause the investment in Shares of the Trust to differ from what would have been achieved through the direct purchase and holding of ETH, as investors will not benefit from staking as a source of return when holding Shares of the Trust.”
In addition to the filing update, asset manager VanEck released a statement shortly after the SEC’s approval of ETFs, emphasizing the potential of Ethereum, the market’s second-largest cryptocurrency, and questioning its role in building a less centralized open-source economy.
The cryptocurrency market, once again, demonstrated its sensitivity to regulatory developments in the United States over the past 24 hours, particularly following the SEC’s approval of Ethereum ETFs. This news initially led to a surge in prices, but was soon followed by a significant decline in major digital currencies, including Ethereum and Bitcoin.
Bitcoin started the week relatively stable, hovering around $67,000. However, the calmness was short-lived. Speculation about the imminent approval of an Ethereum spot ETF by the SEC caused the price of Bitcoin to skyrocket to nearly $72,000, a level not seen in almost two months. Despite this initial surge, Bitcoin’s fortunes quickly reversed, and it fell below $68,000 just before the SEC’s decision, which was announced right before the deadline.
Disclaimer: The opinions expressed in this article, by the author or any mentioned individuals, are solely for informational purposes and do not constitute financial or investment advice. Investing or trading cryptocurrencies carries the risk of potential financial loss.
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