The American investment firm WisdomTree has filed to withdraw its registration statement for the Ethereum Trust three years after it was submitted to the US Securities and Exchange Commission (SEC). This news comes just hours after another asset manager, VanEck, announced the closure of its Ethereum futures ETF due to insufficient demand.
WisdomTree To Cancel Ethereum ETF Registration
In a filing dated September 6, WisdomTree requested the SEC to withdraw the S-1 registration form for an exchange-traded fund called “WisdomTree Ethereum Trust.” The American asset manager originally filed this registration on May 27, 2021, intending to launch an ETF that would provide investors access to Ethereum with reduced costs and liabilities.
A section of the application stated:
“To fulfill its investment goals, the Trust will hold ether and will assess its Shares daily based on the [CF Ether-Dollar US Settlement Price], which is derived from an independent calculation based on trade activity from major ether spot exchanges.”
The “WisdomTree Ethereum Trust” was intended to be listed on the Chicago Board Options Exchange (Cboe) with a proposed maximum offering price of $1,000,000.
Three years later, WisdomTree has opted to retract the registration statement for this ETF along with all associated exhibits. The asset manager has confirmed that no securities related to this application have been or will be sold to the public. Additionally, WisdomTree recognized that the registration fees for this statement, totaling $109.10, are non-refundable and has requested that these fees be allocated for future purposes.
As mentioned earlier, WisdomTree’s announcement follows the recent disclosure by VanEck, which revealed its decision to close the VanEck Ethereum Strategy ETF (EFUT), an investment vehicle centered around Ethereum futures. VanEck stated that this closure is influenced by a review of various factors such as “performance, liquidity, assets under management, and investor interest.” Trading for EFUT will cease on September 16, with share liquidation expected around September 23.
ETH Spot ETF Market Experiences $6 Million Loss
In other developments, the Ethereum spot ETF market recorded a $6 million outflow over the last day, according to data from Farside Investors. The cumulative net flows in this emerging market have now reached -$568.5 million, even though it retains over 2% of the Ethereum market. Additionally, as per data from CoinMarketCap, Ethereum is trading at $2,237, reflecting a 6.64% drop in the last 24 hours.
Featured image from Markets Insider, chart from Tradingview
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