Alex Thorn on Ethereum Staking and the Launch of Spot Ether ETFs
Alex Thorn, director of research at Galaxy Research, believes that Ethereum staking could be a major hurdle to the introduction of spot Ether ETFs in the United States. Thorn suggests that the U.S. Securities and Exchange Commission (SEC) might view staked Ether (sETH) as a security, while Ether (ETH) itself would not fall under this classification. Such a distinction could be the SEC’s response to investor and market pressure.
Staking as a Barrier to New Exchange-Traded Assets
Thorn highlights that staking, the process of locking up crypto assets to secure the network and earn rewards, is becoming a significant obstacle for launching a new category of exchange-traded assets. This development could restrict the creation of innovative crypto funds, as the SEC mandates the exclusion of staking as an option for such funds.
Changes in Spot Ether ETF Applications
Recently, companies like Ark Invest and 21Shares have modified their applications for spot Ether ETFs by eliminating staking from their offerings. This adjustment may signal SEC requirements aimed at simplifying and standardizing the approval process for these funds.
SEC’s Call for Registration Updates
Furthermore, the SEC has urged exchanges planning to trade spot Ether ETFs to promptly update their registration forms. This proactive move demonstrates the regulator’s efforts to prepare for the launch of new investment products, while also underscoring the intricate and unclear regulatory landscape surrounding cryptocurrencies.
