Elimination of Pledge Program May Weaken Demand for Spot Ether ETFs

Many in the crypto market believe that key changes made by issuers to spot Ether ETF applications are good for the Ether blockchain, but bad for the ETF product itself. Issuers, including Fidelity and Ark, have canceled plans to pledge Ether ETFs. Pledging has been a sensitive issue for ethereum because it enables holders to receive income, which has raised questions about whether the token should be considered a security regulated by U.S. regulators. Some market participants have argued that if ETFs are not allowed to pledge their tokens, then spot ETFs are less attractive than buying pledgeable Ether outright.