tl;dr
Valkyrie Funds will not apply for a spot Ethereum ETF in the United States due to regulatory issues surrounding staking. The company cites concerns that investors may not see value without staking, and the crowded nature of applications will reduce profitability for investors. Recent amendments to S...
Valkyrie Funds has decided not to apply for a spot Ethereum ETF in the US due to regulatory issues surrounding staking. They are concerned about investors not seeing value without staking, and the crowded nature of applications reducing profitability for investors.
Recent amendments to S-1 applications indicate that the SEC is seeking to remove the staking feature amid regulatory concerns, leading to reduced optimism and criticisms of the Commission. Market analysts have increased the probability for approval of spot Ethereum ETFs, causing a spike in Ethereum prices.
The SEC reportedly reached out to update applications and list spot Ethereum ETFs, igniting a major bullish sentiment in the market. This decision comes as nine potential issuers of spot Ethereum ETFs are already in the pipeline.
In the last 24 hours, companies have made amendments to the S-1 applications, with the SEC hinting that assets allowing holders to stake could be classified as securities. This caused reduced optimism, prompting criticisms of the Commission and increased anticipation for other funds set to offer similar products.
The anticipation for spot Ethereum ETFs spiked following new developments, with the price of ETH rallying 23% after market analysts increased their probability for approval. This led to an overall increase in cryptocurrency prices, signaling major flows to the market.
According to Reuters, the SEC reaching out to update applications and list spot Ethereum’s ETFs has ignited another major bullish sentiment in the market, further escalating the frenzy surrounding the potential approval of spot Ethereum ETFs. As anticipation continues to build, all eyes are on the SEC's decision regarding these ETFs.