Asset manager WisdomTree has decided to withdraw its filing for an Ethereum Trust with the U.S. Securities and Exchange Commission (SEC), a filing that was originally submitted over three years ago, on May 27, 2021. According to a recent statement to the SEC dated September 6, WisdomTree confirmed that “The Registration Statement was originally filed on May 27, 2021. The Company confirms that no securities have been or will be issued or sold pursuant to the Registration Statement.”
Despite the withdrawal, WisdomTree will not receive a refund of the fees paid for the registration but has requested that these be credited for future submissions. The initial application aimed to list Ethereum ETF shares on the Chicago Board Options Exchange’s BZX Exchange, with WisdomTree noting at the time that the Ethereum market was reaching a maturity similar to that of the Bitcoin market, suggesting it was ready for such financial products.
This withdrawal coincides with the announcement from another asset manager, VanEck, which revealed it is closing its futures-based Ether ETF due to low demand. On September 6, VanEck explained that the decision was influenced by several factors including the ETF’s performance, liquidity, assets under management, and investor interest. VanEck’s Ethereum Strategy ETF (EFUT) will cease trading on September 16, with plans to liquidate and return assets to investors by approximately September 23.
These developments reflect broader challenges and shifting dynamics within the cryptocurrency investment product market, particularly in the realm of ETFs, where spot cryptocurrency ETFs have been capturing the majority of investor inflows.
