Grayscale, Fidelity, Ark, etc. have successively canceled ETH pledges! SEC does not allow Ethereum spot ETF pledge?

Whether the Ethereum spot ETF can be approved by the U.S. Securities and Exchange Commission (SEC) and whether it can be pledged may become key. GrayScale and Fidelity both canceled plans to pledge ETH in ETFs in new applications submitted to the SEC on Tuesday.

Market expectations for the U.S. Securities and Exchange Commission (SEC) to approve the Ethereum spot ETF have risen sharply this week, including: Bloomberg ETF analysts have raised the probability of approval to 75%, and VanEck and Franklin’s Ethereum spot ETF have been listed in the American Securities Depository The clearing company (DTCC) is listed, and six Ethereum spot ETF applicants have submitted revised 19b-4 documents, including VanEck, Fidelity, Franklin, Ark Invest, Grayscale, and Invesco Galaxy. Various good news continue to push up Ethereum and continue its upward trend.

Grayscale, Fidelity cancel ETH pledge plan

It is worth mentioning that when Grayscale applied to convert Grayscale Ethereum Trust ETHE into an Ethereum spot ETF in October last year, it proposed to investors in the application documents that Ethereum could be pledged through ETHE, but Grayscale on Tuesday In the revised preliminary letter of authorization submitted, the relevant wording has been deleted, which means that Grayscale seems to have given up on its plan to pledge Ethereum through ETHE. Other applicants have taken similar steps

Previously, Ark Investment/21Shares had canceled its plan to pledge Ethereum in an updated application document on the 10th. Fidelity's revised S-1 application document submitted to the SEC on Tuesday also showed that Fidelity had withdrawn its original proposal to pledge Ethereum positions through ETFs. plan of.

Fidelity has stated in its previous application documents that it intends to pledge a portion of the trust fund assets to one or more infrastructure providers. However, Fidelity clearly stated in the revised S-1 application document that it will not be responsible for the Ether deposited in the custodian. Square for pledge.

For multiple Ethereum spot ETF applicants to submit revised 19b-4 documents and abandon the pledge of Ethereum, Bloomberg ETF analyst James Seyffart analyzed: (Cancel pledge) Is the only meaningful and substantive change I can find? ? Removed the staking wording and added very clear wording that no one can pledge the fund's ETH, yes that was expected.

The key to being approved lies in the pledge?

Previously, Alex Thorn, director of research at Galaxy Digital, said that if the SEC wants to approve Ethereum spot ETFs, it may determine that ETH itself is not a security, but the pledged ETH will become a security, and the SEC will prohibit these ETFs from pledging the ETH they hold.

Mark Connors, research director of digital asset investment company 3iQ, said: In order to appease the recently frustrated SEC, the applicant for the Ethereum spot ETF document canceled the pledge wording and surrendered. We believe that the cancellation of the pledge wording is a temporary concession.