SEC Amendment Making Ethereum More Compatible with Bitcoin Raises Price! - Coin Newsletter

Investment firms Ark Invest and 21Shares' change to spot Ethereum ETFs has stimulated the cryptocurrency market.

Ark Invest and 21Shares, which were among the 11 companies that successfully managed the spot Bitcoin exchange-traded fund (ETF) application process and received approval, made a remarkable update for the spot Ethereum ETF they jointly offered.

In their updated S-1 filing with the SEC on Wednesday, February 7**, the companies emphasized that the cash flow mechanism applied to the spot Ethereum ETF will apply to the just like the spot Bitcoin ETF**. One of the most important steps on the road to spot Bitcoin ETF approval was the revisions to this cash flow in line with the SEC's demands.

With this new arrangement, the corporate-owned spot Ethereum ETF will have a cash generation and redemption mechanism, meaning that participants will only deliver cash to create shares and receive payments only in cash when redeeming shares.

On the other hand, another striking part of the update was the section dedicated to the possibility of Ethereum staking. In this section, it was stated that the ETF in question is ready to provide Ethereum staking services through one or more trusted third parties.

Commenting on the issue, Bloomberg senior ETF analyst Eric Balchunas noted that the companies have a similar and cohesive attitude** to the spot Bitcoin ETF process:

HERE WE GO AGAIN: ARK/21Shares has filed an amended S-1 for spot Ethereum ETFs, apparently they have updated it to just cash creations and some other things that make it suitable for the recently approved spot Bitcoin ETF prospectus.

According to CoinGecko data, these steps taken for Ethereum have also reflected positively on the price. Ethereum, which has risen 2.6% in the last 24 hours in the last 24 hours, is trading at $2,420 at the time of writing.