Vaneck, a massive investment management firm, has made updates to its S-1 filing following the U.S. Securities and Exchange Commission’s (SEC) recent announcement regarding the initial approval of exchange-traded funds (ETFs) based on Ethereum (ETH) in cash on May 23rd.
In its filing dated May 23rd, the company clarified that none of its affiliates, including the Trust, the Sponsor, the ETH Custodian, or any associated individuals, will be involved in “Staking Activities.” ETF issuers have recently removed the staking service from their proposals to the SEC.
“The Trust will not utilize its ETH for trading activities and, as a result, investors will not receive any staking rewards or income of any kind from staking activities. By forgoing potential returns from staking activities, an investment in Shares of the Trust may differ from what would have been obtained through purchasing and holding ETH directly, as staking is not considered a source of return for the Trust,” states a section of the updated document.
In addition to the filing update, VanEck, the asset manager, released a statement shortly after the SEC’s approval of ETFs, emphasizing the potential of Ethereum as the market’s second-largest cryptocurrency and raising questions about its role in constructing a decentralized open-source economy.
BTC and ETH experienced a pullback following the SEC’s approval of the Ethereum ETF.
The cryptocurrency market once again demonstrated its sensitivity to regulatory developments in the United States over the past 24 hours, particularly after the SEC approved Ethereum ETFs. This news initially caused a surge in prices, followed by a significant decline in major digital currencies, including Ethereum and Bitcoin.
Bitcoin had a relatively steady start to the week, hovering around $67,000. However, the calm was short-lived. Speculation about the imminent approval of an Ethereum spot ETF by the SEC caused the price of BTC to skyrocket to nearly $72,000, a level not seen in almost two months. Despite this initial surge, Bitcoin experienced a reversal of fortunes, dropping below $68,000 just before the SEC’s decision, which was made right before the deadline.
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