Less than two days after submitting separate requests to the U.S. Securities and Exchange Commission, asset managers VanEck and ProShares have apparently decided not to pursue exchange-traded funds with exposure to Ether.
In individual filings Aug. 20 with the SEC, legal representatives for VanEck and ProShares said the firms had chosen not to proceed with the registration of their respective exchange-traded funds or Ether-based ETFs. VanEck had filed an application to launch an “Ethereum Strategy ETF” with the SEC on August 18., while ProShares applied for an “Ether Strategy ETF” on the same day.
Both products were apparently aimed at providing exposure to Ether (ETH) by investing in futures contracts, as well as in combination investment vehicles and other exchange-traded products.. It is unclear why both asset managers chose to apply for and withdraw seemingly similar applications for Ether ETFs on the same days, but the two firms said they had not sold any securities related to the potential offering.
SEC Chairman Gary Gensler said earlier this month that he would be more open to accepting ETFs based on cryptocurrency futures rather than through direct exposure. At that moment, VanEck already had Bitcoin (BTC) and ETH exchange-traded funds under review by the agency, but the company later submitted a separate prospectus for a Bitcoin “strategy” ETF, a fund with exposure through futures contracts of BTC.