VanEck (an asset management company) was reported recently to have applied under the SEC of the United States for an exchange-traded fund (ETF) of Ethereum. Nonetheless, it has now been decided by the organization to withdraw its draw out its application. For this purpose, it has filed another transcript mentioning that the firm has amended its Ethereum Strategy ETF. It further states that the firm has not sold any securities regarding the previously submitted application, and now it has determined that it would not proceed to offer this service at present.
Another asset management company named ProShars also opted not to move ahead with an ETF. The latest filing of the firm notes that it deals with an amendment to the newly offered service Ether Strategy ETF. It further described that the company is pulling out its application for the ETF as it has taken a firm decision not to step further with the registration process for the service and that the company is not interested in offering the service at the current time.
The news about both the withdrawals was disclosed on Friday through SEC filings, and the agency announced that the entities have opted not to continue with the registration process of their services. The news was astonishing for a lot of people in the community of Ethereum because they were aspiring about the utilization of the upcoming services after the filings were submitted on Wednesday.
The purpose of the two aforementioned ETFs was to increase the Ether exposure of the people by making investments into the Futures contracts as well as the other exchange-traded products. These companies could have become a part of the crypto-ETF filings, which are now 21 over the year. While the motive behind the withdrawal of the firms is ambiguous, it is noteworthy that both of them have already applied for the ETFs of Bitcoin.
Earlier this month, Gary Gensler (the chairman of the SEC) talked about ETFs. He expressed that he would more openheartedly accept crypto-futures-based ETFs rather than digital assets’ straightforward exposure. VanEck had filed for a strategy ETF of Bitcoin separately as the words of Gensler urged the firm to do so. Nonetheless, the Securities and Exchange Commission of the United States is delaying the procedure of approving the ETF applications up till now.