The price of Ether has risen by 2%, surpassing $2,400, following the modification of the Ethereum Spot ETF by Ark Invest/21Shares. The updates to the ETF’s prospectus aim to align it with the recently approved Bitcoin Spot ETFs, according to Eric Balchunas of Bloomberg Intelligence. The modified prospectus mentions the possibility of staking Ether through third-party providers, opening the door to rewards for the fund.
Strategic Modification of the ETF Prospectus
This revision, submitted to the U.S. Securities and Exchange Commission, incorporates a cash creation and redemption mechanism similar to that favored by the SEC for the approved Bitcoin Spot ETFs in January. Eric Balchunas of Bloomberg Intelligence points out that these adjustments aim to align the offering of the Ethereum Spot ETF with recent Bitcoin ETF practices, signaling a thoughtful strategy to facilitate regulatory approval.
Impact on the Price of ETH
Following this announcement, the price of Ether climbed by nearly 2% in one hour, surpassing $2,400 for the first time since January 22. This increase marks a stronger performance compared to the overall cryptocurrency market, with ETH showing a 2.4% increase in the past 24 hours, compared to Bitcoin’s 0.7% increase.
Perspectives for Innovation and Growth
The revised prospectus also mentions the potential introduction of ETH staking through trusted third parties, which could allow the fund to lock up a portion of its assets and generate rewards. This development suggests a search for innovation and diversification of yield strategies for the ETF.
