Just two days after filing with the Securities and Exchange Commission (SEC) for Ethereum futures ETFs, asset managers VanEck and ProShares have suddenly withdrawn their applications.
In individual filings on Friday, the firms requested the regulatory agency to not proceed with registering their respective Ether-based exchange-traded funds. Interestingly, the application and withdrawal dates for the ETFs also coincide with each other.
At present, it remains still unclear on the abrupt withdrawals. Although, Senior ETF Analyst for Bloomberg Eric Balchunas speculates that the SEC might have hinted to the firms that they were unlikely to approve an ETF futures fund for now.
In the Wednesday filing, VanEck had proposed to launch an “Ethereum Strategy ETF” while ProShares applied for an “Ether Strategy ETF.” Both the products are intended to provide exposure to Ether (ETH) by investing in futures contracts, but not Ethereum itself.
Currently, there are over a dozen of crypto ETF applications before the Securities and Exchange Commission (SEC) but the regulator has pushed back each time. However, SEC chair Gary Gensler recently hinted that the commission may consider approving Bitcoin ETFs that only trade BTC futures contracts which led to a pile of filings for those types of products.
Currently, there are 17 Bitcoin ETF filings in the pipeline with 6 of them for futures-based products. There are also three remaining ether ETF filings even after today’s two withdrawals, all of the funds would directly hold Ether.
While the SEC has been reluctant to approve any cryptocurrency ETFs, regulators in other parts of the world have been friendly towards crypto-ETFs.