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VanEck, ProShares withdraw their Ethereum ETF applications

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Asset management firm VanEck was in the news a few days ago after it filed an application with the United States Securities and Exchange Commission [SEC] for an Ethereum exchange-traded fund [ETF]. However, the firm has now decided to withdraw its application.

According to VanEck’s latest filing,

“The Amendment relates to VanEck Ethereum Strategy ETF, a series of the Trust. No securities were sold in connection with the Amendment and the Trust has determined not to proceed with the offering of this series at this time.”

ProShares, another asset manager, also decided not to go ahead with an ETF.

“The Amendment relates to ProShares Ether Strategy ETF, a new series of the Trust. The Trust is withdrawing the Amendment because it has elected not to proceed with the registration process for the new series associated with the Amendment. “

This was revealed on Friday through SEC filings, with the agency reiterating that the firms had elected not to proceed with registering their Ether-based exchange-traded funds.

This was startling news for many in the ETH community. Especially since the aforementioned applications to launch an “Ethereum Strategy ETF” and an “Ether Strategy ETF” were filed on Wednesday.

The two ETFs were aimed at increasing exposure to Ether [ETH] by investing in Futures contracts along with other exchange-traded products. Had they gone ahead with their ETFs, the two firms would have joined a league of nearly 21 crypto-ETF filings so far in 2021. Although the reason behind the firms pulling out their applications is not clear, it’s worth noting that they have also applied for Bitcoin ETFs.

SEC Chair Gary Gensler commented on ETFs earlier this month. At the time, he had said he would be more open to accepting ETFs based on crypto-futures instead of direct exposure to the digital asset. A

Around that time, VanEck filed separately for a Bitcoin “strategy” ETF, keeping in mind, the aforementioned remarks by Gensler. However, the SEC is still mulling over approving any exchange-traded fund right now.

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Namrata is a full-time journalist at AMBCrypto covering the US and Indian market. A graduate in Mass communication, while majoring in Journalism, she writes mainly about regulations and its impact with a focus on technological advancements in the crypto space.