ARK Invest and 21 Shares have updated their spot Ethereum exchange-traded fund (ETF) proposal, removing the staking component. The previous filing included a provision for staking a portion of the trust's assets through trusted providers, but this language has been omitted from the latest filing.

This change could be a strategic move to address potential SEC concerns or a last-ditch effort to secure approval. The ETF, if approved, would offer direct exposure to Ethereum and trade on the Cboe BZX Exchange.

Unfortunately, the chances of SEC approval for spot Ethereum ETFs have decreased in recent months. Analyst Eric Balchunas has lowered his estimate of approval by late May from 70% to 25%. ARK Invest and 21 Shares initially applied for the ETF in September, with 21Shares as the sponsor, Delaware Trust Company as the trustee, and Coinbase Custody Trust Company as the ether custodian. ARK Investment Management would provide marketing assistance as the sub-adviser.