On August 20, asset managers ProShares and VanEck filed with the SEC to withdraw their applications to launch Ether Strategy ETF and Ethereum Strategy ETF based on Ethereum futures.
Documents for the firm’s structure approvals were submitted to the regulator on August 18.
Product proposals complied with the Investment Company Act of 1940. In Gary Gensler’s view, it provides stronger protections than the Securities Act of 1933.
It was anticipated that, in addition to Ethereum futures, the funds would be able to invest in объединенные инвестиционные фонды and other exchange-traded products focused on ether.
Commenting on the swift withdrawal of the filings, Bloomberg ETF senior analyst Eric Balchunas suggested that the firms were being told: approvals for the products were unlikely.
Now ProShares is withdrawing their Ether ETF filing. SEC may have had a conf call, Godfather-style. Ether, you’re out. pic.twitter.com/ZZ4b5zpx54
— Eric Balchunas (@EricBalchunas) August 20, 2021
“The SEC may have had a Godfather-style conference. Ethereum, you’re out,” Balchunas wrote.
Balchunas, for his part, sees this as a good sign for potential ether-based ETF issuers:
“As long as we see Ethereum-only products being rejected, I would say this is good news for Bitcoin ETFs. It seems they [SEC] are saying: let’s do this now, but only for Bitcoin.”
Back in June, the Commission again extended the review of VanEck019s application to launch a Bitcoin-based ETF.
In August, the company sent to the regulator documents to register a Bitcoin-strategy ETF.
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