The financial digital assets industry is buzzing with discussions going around the modifications done to applications for proposed spot Ether exchange-traded funds (ETFs). Filings reveal that issuers like Fidelity and Ark Investment management firms had decided to detach plans for staking Ether they would purchase if their ETFs get approval.
Ether ETF soon?
Experts suggest that this decision might prove to be beneficial for the Ethereum blockchain but it will make the ETF products less attractive to investors. However, the Staking has already seen the regulator’s scrutiny. Locking up cryptos to validate transactions and earn rewards in return has raised questions about the nature of the biggest altcoin in the industry.
This comes in when Ethereum has recorded a price surge of more than 26% in the last 7 days. This jump is driven by the hope the US Securities and Exchange Commission (SEC) will push the green button to at least one ETF by Thursday.
ETH price is up by over 67% on the year to date (YTD) basis. However, it has gained more than 30% in the last 90 days. Ether is trading at an average price of $3,811, at the press time. It is still down by 22% from it all time high (ATH) of $4,891 recorded on November 16, 2021. The biggest altcoin is holding a market cap of around $457 billion.
Staking issue
According to reports, the US financial watchdog’s stance on staking came to light when the crypto exchange Kraken settled for $30 million. The settlement came over allegations of breaking the rules with its “staking as a service” products.
Several experts had advocated the view the removal of staking plans from ETF issuers as a positive development. This might align with Ether’s goals of maintaining decentralization and preventing institutional takeover.
Data provided by Nansen shows that around 27% of all outstanding Ether is staked. Still, the concerns remain that successful Ether ETFs could lead to issuers accumulating large amounts of Ether. This can lead to the network’s vulnerability to attacks.
The global digital assets market has seen a marginal surge over the last 24 hours. The total market cap stood at around $2.6 trillion. The 24 hour trading volume is down by 20% to stand at $96 billion. Bitcoin has seen a surge of 5% in the last 7 days.
