Two issuers withdraw SEC submissions for an ETH ETF

Aug 20, 2021 | The Block News | 0 comments

two-issuers-withdraw-sec-submissions-for-an-eth-etf

Two issuers have withdrawn their submissions with the Securities and Exchange Commission (SEC) to create an Ether-based exchange-traded fund (ETF). 

VanEck withdrew its submission for its Ethereum Strategy ETF today after beginning the approval process last May. At the time, it sought to create an investment vehicle giving investors exposure to ETH, priced via the MVIS CryptoCompare Ethereum Benchmark Rate. An accurate pricing mechanism has been a sticking point for the SEC throughout the conversation surrounding the approval of crypto exchange-traded products.

ProShares also called off its bid for approval of its ProShares Ether Strategy ETF. It first filed for the product on Wednesday.

The two submissions for approval followed a wave of ETH ETF approvals in neighboring Canada, which has historically been a proving ground for novel financial products before a green light in the U.S. 

The sudden withdrawals of the submissions have led some to speculate that the SEC has communicated its reluctance to approve an ETH ETF in the current climate.

“SEC may have had a conference call, Godfather-style. Ether, you’re out,” tweeted Eric Balchunas, Senior ETF Analyst at Bloomberg.

More broadly, the securities regulator has continued to punt on the question of a bitcoin ETF. However, Chair Gary Gensler recently said he intends to take a closer look at submissions for the product with the commission likely to look more favorably on those tied to futures contracts.

ProShares proposed a bitcoin futures ETF earlier this month. Meanwhile, VanEck is still awaiting an answer from the SEC on its bitcoin ETF proposal. The SEC has extended on the offering is seeking additional comments on the submission.

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

News Source from TheBlockCrypto.com

Related Articles

SEC levies charges against alleged ‘meme stock’ wash traders

SEC levies charges against alleged ‘meme stock’ wash traders

The Securities and Exchange Commission (SEC) has charged two men with allegedly wash trading meme stocks to take advantage of rebate programs. At the start of 2021, certain unlikely stocks went gangbusters when online communities identified that Wall Street...

Pin It on Pinterest

Share This