In the cryptocurrency arena, efforts to launch a spot Ethereum ETF are ongoing. Recently, major players have updated their forms, removing Ethereum staking terms that could pose regulatory challenges. BlackRock, Grayscale, and Bitwise have all taken out staking conditions from their amended 19b-4 forms submitted to the SEC for their proposed spot ETH ETFs. This move aims to navigate around regulatory issues. Staking is commonly viewed as a way to earn passive income within the crypto sphere. On Wednesday, BlackRock, Grayscale, and Bitwise resubmitted modified 9b-4 forms to the SEC for their spot Ethereum ETFs.

What’s Included in the New Forms?

The modified BlackRock document specifies that no entity will use the Ethereum (ETH) Trust’s assets for Ethereum Proof of Stake validation or to generate additional ETH. Essentially, the Trust will not engage in staking or similar activities to earn passive income. For the latest financial news, visit COINTURK FINANCE.

Staking involves locking up a certain amount of cryptocurrency to support a Blockchain’s operations, earning rewards in return. These rewards are generally seen as passive income by crypto investors. According to Lido’s data, the annual return on Ethereum staking is about 3%.

Positive Impact on Ethereum Price

This week’s developments have stirred excitement in the cryptocurrency market. Fidelity has also retracted its initial staking plans and revised its S-1 forms. Following this trend, other major firms like VanEck, Franklin Templeton, Invesco Galaxy, and ARK 21Shares have also removed staking from their applications. Hashdex remains the only major player yet to make changes to its Ethereum ETF application.

The Depository Trust and Clearing Corporation (DTCC) has started listing VanEck’s Ether ETF under the symbol ETHV on its platform, a move seen positively by many. On Monday, Bloomberg analysts Eric Balchunas and James Seyffart increased the approval probability for these ETFs from 25% to 75%, causing a market surge. This news led to Ether gaining over 17%, and Bitcoin exceeding the $71,000 mark for the first time since early April.

At this point, an immediate SEC approval was not anticipated. James Seyffart mentioned in an interview with Unchained that the matter has now taken on “political” dimensions and that the decision likely involved the Biden administration.

In conclusion, the removal of staking terms from Ethereum ETF applications by major firms reflects a strategic move to meet regulatory requirements and potentially gain approval. This development has positively influenced the cryptocurrency market, demonstrating the intricate link between regulatory actions and market dynamics.