- Grayscale had previously suggested to investors that they might stake ether through the trust.
- Staking wording was absent from Grayscale’s amended filing. Several issuers have taken comparable actions, such as Fidelity.
In an updated preliminary proxy statement, Grayscale Investments withdrew its offer to stake in its proposed spot ether exchange-traded fund as well.
Grayscale had previously suggested to investors that they might stake ether through the trust. The Grayscale Ethereum Trust’s revised preliminary proxy statement, which was submitted on Tuesday, does not contain that phrase.
According to Grayscale’s filing on Tuesday, Amendment No. 2’s main goal is to take Proposal 2 out of the preliminary proxy statement.
Staking elements have also been eliminated by other issuers from their spot Ethereum ETF proposals. Earlier on Tuesday, Fidelity removed the option to stake rewards from its S-1 registration statement.
Analyst James Seyffart of Bloomberg ETFs stated that Grayscale’s action was anticipated.
It appears that Grayscale is taking out the staking clause from its application to change $ETHE into an ETF. In a post on X, Seyffart stated that (this is/was predicted).
In order to transform the Grayscale Ethereum trust into a spot ether ETF, Grayscale and NYSE Arca submitted a Form 19b-4 together in October. Additionally, Grayscale had earlier requested permission from the SEC in January and won a court battle to successfully convert its Grayscale Bitcoin trust into a spot bitcoin exchange-traded fund (ETF).
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
