VanEck and ProShares Withdraw Their Ethereum ETF Applications

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VanEck and ProShares Withdraw Their Ethereum ETF Applications
VanEck and ProShares Withdraw Their Ethereum ETF Applications

VanEck, an asset management company, became known after filing an application for the Ethereum Exchange Traded Fund (ETF) with the US Securities and Exchange Commission a few days ago. However, the company has now decided to withdraw its application.

According to VanEck’s latest document,

“The change affects the VanEck Ethereum Strategy ETF, which is a series of trusts. No securities have been sold in connection with the change and the Trust has decided not to issue the series at this time.”

ProShares, another asset management company, has also decided to stop using ETFs.

“The change relates to the ProShares Ether Strategy ETF, a new series of the Trust. The Trust is withdrawing the change because it has not chosen to continue the registration process for the new series in connection with the change. “

SEC Choose not to Register Ether-based ETF

This was announced on Friday through a document from the US Securities and Exchange Commission reiterating that these companies have chosen not to continue registering their ether-based exchange-traded funds.

For many in the ETH community, this is amazing news. Especially because the above-mentioned applications for the launch of “Ethereum Strategy ETF” and “Ether Strategy ETF” were submitted on Wednesday.

These two ETFs aim to increase exposure to Ether (ETH) by investing in futures contracts and other exchange-traded products. If they keep pushing their ETF, the two companies will join a consortium of nearly 21 crypto ETF applications to date in 2021. While the reason for the two companies’ withdrawal is not clear, it’s worth noting that they also applied for the Bitcoin ETF.

SEC chairman Gary Gensler spoke about the ETF earlier this month. At the time, he had stated that he would be more willing to accept ETFs based on crypto futures rather than contacting digital assets directly.

At that time, VanEck took the above statements from Gensler into account and applied for the Bitcoin “strategic” ETF separately. However, the U.S. Securities and Exchange Commission is still considering approving exchange-traded funds.