ARK Invest and 21Shares Discuss Cash Creation and Redemption Processes in Their Spot Ether ETF Revision Documents

ARK Invest and 21Shares discuss the cash creation and redemption process in their latest Spot Ether ETF document, which states: "Authorised Participants will deliver cash only to create Shares and receive cash only upon redemption of Shares." The updated document also includes a new section on pledges. The documents indicate that the Sponsor may pledge a portion of the Trust's assets through one or more trusted pledge providers and will typically want to pledge Ether from the Trust's cold repository balance. Given any pledging activity in which the Trust may be involved, the Trust will receive a certain amount of Ether Pledge Incentive, which may be considered income to the Trust.