TechFlow news, according to The Block, ARK Invest and 21Shares discussed the cash creation and redemption process in their latest filings for a spot Ethereum ETF. According to documents released on Wednesday, "Authorized Participants will deliver only cash to create shares and will receive only cash when redeeming shares."
The process of creating and redeeming ETF shares has previously been a focal point of discussion between the SEC and issuers of spot Bitcoin ETFs. The SEC may favor the cash model, while some asset firms prefer the in-kind model. Additionally, the updated filing also mentions staking.
The sponsors may stake portions of the trust's assets through one or more trusted staking providers, and generally intend to stake Ethereum from the trust’s cold storage balance. Given any staking activities the trust may engage in, the trust would earn certain Ethereum staking rewards, which could be considered income to the trust.
