VanEck, ProShares Withdraw ETH ETF Application

Barely a week after VanEck asset management firm made the headlines for filing for an Ethereum Exchange Traded-Fund with the United States Securities and Exchange Commission(SEC), it appears again in the news today that the firm is ready to withdraw its application. ProShares also did the same.

While giving the reason for the withdrawal, VanEck said, “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.”

Another asset management firm, ProShares, also followed suit by withdrawing its application for an ETF. It didn’t mention the reason for this, although it said it just chose to. According to the firm, “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. “

The said ETFs were supposed to increase ETH exposure through investments in Futures contracts and other exchange-traded products. This means they would be adding to nearly 21 crypto-ETF filings seen so far in the year if they had not discontinued their registration. Although coming is still not understood, it is worth noting the firms have a pending application on Bitcoin ETFs.

In one of his recent comments, SEC Chair Gary Gensler promised a friendly environment for ETFs, as he said he would be more open to accepting ETFs based on crypto-futures instead of direct exposure to the digital asset. 

This remark led to VanEck’s filing of a separate Bitcoin “strategy” ETF. However, the SEC is still mulling over approving any exchange-traded fund right now.

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