Bit Digital expressed optimism around spot Ethereum (ETH) ETFs’ upcoming launch but drew attention to the funds’ lack of staking on July 16.
The company said it is “thrilled for the increased normalization and adoption” around Ethereum and the technology’s potential to reshape the financial system. Bit Digital also asserted that the ETFs could be a significant price catalyst for ETH in future months.
However, Bit Digital drew attention to the funds’ limitations, noting:
“It is important to note that the ETH ETFs won’t be able to stake and benefit from ETH’s full potential.”
Bit Digital referred to its website, which identifies the firm as the only publicly traded Bitcoin miner that stakes Ethereum. The company spends BTC mining rewards on ETH, which it stakes. It then redeploys ETH staking rewards to add sustainable Bitcoin miners, concluding the cycle.
Bit Digital also states that it is among the largest ETH holders of any Nasdaq-listed company, holding over 29,000 ETH ($100.4 million).
The company said its BTBT shares provide “exposure to the smart contract economy.”
ETF applicants dropped staking
Several spot ETH ETF applicants attempted to accommodate ETH staking to their proposals around February. They intended to treat staking rewards as income for the fund.
However, applicants removed staking plans from their applications to reportedly meet the SEC’s expected approval requirements around May. Spot ETH ETFs have since gained initial approval without allowances for staking.
Bloomberg ETF analyst Eric Balchans believes the SEC will grant issuers permission to launch the funds on July 22, allowing the funds to begin trading on July 23.
Mentioned in this article
Assad Jafri
AJ, a passionate journalist since Yemen’s 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.
Credit: Source link