WisdomTree Cancels Spot Ethereum ETF Filing Amid VanEck Exits

• WisdomTree asked the US SEC to withdraw its application of registration for spot Ethereum ETF.
• VanEck also announced its exit from the spot Ether ETF race due to several factors including poor performance and low investor interest.

Both WisdomTree and VanEck announced their departure from the spot Ethereum (ETH) exchange-traded fund (ETF) market on September 6. WisdomTree was still in its registration stage prior to its move. Meanwhile, VanEck has already been offering the ETHV Ethereum fund to investors since their approval for launch on July 23 this year.

WisdomTree Pulls Out Ether ETF Registration Statement

WisdomTree asked for the US Securities and Exchange Commission’s (SEC) consent to withdraw its Form S-1 Registration Statement for WisdomTree Ethereum Trust. It cited Rule 477 under the Securities Act of 1933, as amended by the Securities Act, as its grounds for the request.

The fund manager submitted its application on May 27, 2021, for the asset’s listing on the Chicago Board Options Exchange’s (Cboe) BZX Exchange. It was on the same month VanEck filed for its Ether ETF venture.

The popular ETF issuer, which had around $108.76 billion in global assets under management (AUM) as of last Friday, didn’t cite any reason for its decision. It also acknowledged that the regulator will no longer refund its filing fees. However, it appealed to the agency to credit the fees for “future use.”

VanEck Updates Spot Ethereum ETF Line-Up

According to VanEck, it will delist ETHV from the Cboe after the market closes on September 16. Consequently, it will liquidate the fund on September 23.

The company with $107.7 billion total AUM as of June 30 cited factors, including performance, liquidity, assets under management, investor interest, and operational considerations, as reasons behind the move. To date, the asset in question has accumulated $63 million in total net inflows since its introduction more than a month ago.

So far, VanEck’s highest daily inflow for ETHV was $19 million, while its lowest came at a negative $4.8 million. It should be noted, though, that the majority of its trading days on Farside Investors’ data were marred by zero inflows, so the numbers may not accurately represent its actual performance.

Investors who won’t be able to sell their shares upon liquidation of the VanEck spot Ethereum ETF “will receive a liquidating distribution of cash in the cash portion of their brokerage accounts equal to the amount of the net asset value of their shares.”