The price of Ethereum’s native token, ether (ETH), surged to $2,457 and then retraced to $2,424 after news of amendments to the joint spot Ethereum exchange-traded fund (ETF) application by Ark Invest and 21Shares. This amendment aims to align the spot ETH ETF with the cash creation and redemption model used in spot Bitcoin ETFs. However, the inclusion of ETH staking in the amended filing is still uncertain pending regulatory approval.
In addition to the spot ETF application, Ethereum’s ecosystem also saw a positive development with the successful deployment of the Dencun upgrade on the Holesky testnet.
The amended S-1 filing introduces a cash creation and redemption policy, mirroring the structure of recently approved spot Bitcoin ETFs. This change is expected to streamline the creation process and align with regulatory expectations. There are also plans to potentially stake ETH tokens from the Trust’s Cold Vault Balance, although the inclusion of staking in the final proposal is not guaranteed.
The news of the amended ETF application sparked mixed reactions from investors and industry observers. While it is a positive development for spot Ethereum ETFs, expectations for approval vary. Analysts differ in their predictions, with some giving it a 43% chance of approval in May, while others are more optimistic. Despite the uncertainty, Ethereum’s price surge indicates investor optimism and interest in a potential spot ETH ETF launch.
Stakeholders eagerly await further developments in the ETH ETF space, closely monitoring regulatory decisions and industry dynamics.
