Investment management firm VanEck has withdrawn its recently filed Ethereum Strategy (ETF) exchange-traded fund application from the Securities and Exchange Commission (SEC) table. VanEck announced last week that it had decided not to proceed with the offering “for the time being.”
At the same time, ProShares, another asset management firm, has also withdrawn a similar Ether-based ETF application.
The announcement came as a shock to the Ethereum community as applications were submitted just two days before they were withdrawn. While the reason the firms withdrew their bids is not clear, some observers seem to think the move may have something to do with Ethereum, as both firms have also filed for Bitcoin ETF futures and have not withdrawn bids.
Regardless, 21 more crypto ETF applications are awaiting SEC approval. All filings were filed this year, and after SEC Chairman Gary Gensler commented on several filings, the regulator is more likely to approve a crypto ETF based on futures contracts than on spot trading of an asset class. He made the comment while speaking at the Aspen Security Forum earlier this month.
His comment prompted the SEC’s approval of a bitcoin futures mutual fund proposed by ProFunds in July. The fund does not directly own bitcoins, but holds futures contracts tied to bitcoins. Gensler’s statements about the fund implied that the SEC could smile at a bitcoin ETF with a similar approach.
In contrast, Hester Pierce, Commissioner of the Securities and Exchange Commission, condemned the long period during which the SEC approved any crypto ETF in the US while other countries moved on to theirs.
Speaking to CNBC in July, Pierce said the approval of a Bitcoin ETF is long overdue and said the SEC’s previous waivers for such funds were sort of a double standard compared to other ETFs approved by regulators.
“I thought that if we applied our standards the same way we apply to other products, we would have already approved one or more of them,” she said.
Cryptocurrency related products are already being traded on traditional exchanges in other countries and, as noted, are thriving. Switzerland, Sweden, Germany and several other countries have approved cryptocurrency exchange products (ETP). However, Canada became the first country to approve a bitcoin exchange-traded fund, followed by Brazil. The ETF with the lowest fees available right now is the CI Galaxy Bitcoin ETF (BTCX) (with 0.95% annual fees), which launched in March and has around $ 254 million in assets.
In the US, there seems to be a lot of pending demand for crypto ETFs, especially those associated with bitcoin, as retail investors as well as institutional investors see it as a simplified, diversified, affordable and relatively cheap way. to access a digital asset. Strong demand drove speculation that one of them could likely be approved before the year expires, as well as the growing number of applications seen by the Securities and Exchange Commission.