Less than two days after submitting separate applications to the U.S. Securities and Exchange Commission, asset managers VanEck and ProShares have seemingly decided not to pursue exchange-traded funds with exposure to Ether.
In individual Aug. 20 filings with the SEC, legal representatives of VanEck and ProShares both said the firms had elected not to proceed with registering their respective Ether-based exchange-traded funds, or ETFs. VanEck had submitted a filing to launch an “Ethereum Strategy ETF” with the SEC on Aug. 18, while ProShares applied for an “Ether Strategy ETF” the same day.
Both products had seemingly aimed to provide exposure to Ether (ETH) by investing in futures contracts as well as pooled investment vehicles and other exchange-traded products. It’s 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 connected to the potential offering.
SEC chair Gary Gensler said earlier this month that he would be more open to accepting ETFs based on crypto futures rather than through direct exposure. At that time, VanEck already had Bitcoin (BTC) and ETH exchange-traded funds under review by the agency, but the company later filed a separate prospectus for a Bitcoin “strategy” ETF, a fund with exposure through BTC future contracts.