On February 7, ARK Invest and 21Shares resubmitted an updated application to launch a spot Ethereum Exchange-Traded Fund (ETF). The companies proposed to generate additional income for the ETF by staking coins from the trust.
The application outlines the use of cash-only for creating and redeeming shares, similar to Bitcoin-based instruments.
This means that issuers must sell the product’s assets and transfer cash to the investor. Alternatively, a natural scheme would give the manager more flexibility in managing the portfolio.
According to the document, the issuer may delegate the staking of a portion of the trust’s assets to one or more reliable service providers. The Fund will receive fees for staking Ethereum, which can be considered as income.
However, the amount of coins earned through staking can vary significantly. Lawyer Scott Johnsson highlighted that the portion mentioning staking was written in square brackets, indicating that it was open for discussion. This suggests that there may be further consideration or debate on the use of staking in the ETF.
