US investment firm WisdomTree has requested to withdraw its Ethereum Trust registration statement three years after it was filed with the US Securities and Exchange Commission (SEC). The development comes hours after asset management firm VanEck shut down its Ethereum Futures ETF due to lack of demand.
WisdomTree to End Registration of Ethereum ETF
in Submit files On September 6, WisdomTree filed with the Securities and Exchange Commission to withdraw the S-1 registration form for the exchange-traded fund known as the “WisdomTree Ethereum Trust.” Introduction first Ethereum Corporation issued this registration statement on May 27, 2021, seeking to launch an exchange-traded fund that would provide investors with exposure to Ethereum but with lower costs and fewer obligations.
The application statement said:
In pursuit of its investment objective, the Fund will hold Ether and will value its shares daily based on the (CF Ether-Dollar US Settlement Price), a value independently calculated based on an aggregation of trade flows executed on major Ether exchanges.
The WisdomTree Ethereum Trust was scheduled to trade on the Chicago Board Options Exchange (CBOE) at a proposed maximum aggregate offering price of $1,000,000.
Three years later, WisdomTree filed a request to withdraw the registration statement of this ETF along with all relevant documents. The asset manager states that no securities related to the said request were sold to investors. In addition, WisdomTree acknowledges that the $109.10 filing fee for this registration statement is non-refundable. It also requests that this fee be directed toward future use.
As mentioned earlier, WisdomTree’s announcement comes shortly after VanEck’s announcement. It has been revealed. VanEck is planning to close its VanEck Ethereum Strategy ETF (EFUT), which is based on Ethereum futures contracts. According to VanEck, the decision is based on an analysis of several factors including “performance, liquidity, assets under management, and investor interest.” Trading activity on EFUT will cease on September 16, followed by a liquidation of shares on or around September 23.
ETH Spot ETF Market Sees $6 Million Loss
In other news, the Ethereum spot ETF market recorded outflows of $6 million in the last day according to Data from Farside Investors. The emerging market’s total cumulative net inflows now stand at -$568.5 million despite capturing over 2% of the Ethereum market. Meanwhile, CoinMarketCap data shows Ethereum trading at $2,237 after a 6.64% drop in the last day.
Featured image from Markets Insider, chart from Tradingview