US investment firm WisdomTree has filed to withdraw its ethereum Trust registration statement three years after filing with the US Securities and Exchange Commission (SEC). The move comes hours after asset manager VanEck shut down its ethereum futures ETF citing lack of demand.
WisdomTree to deregister ethereum ETF
In a presentation On September 6, WisdomTree approached the SEC to withdraw the S-1 registration form of the exchange-traded fund known as “WisdomTree ethereum Trust.” The American asset manager first presented This May 27, 2021 registration statement sought to launch an ETF that would offer investors exposure to ethereum but with lower costs and fewer liabilities.
A statement from the app said:
In order to achieve its investment objective, the Trust will hold ether and value its Shares on a daily basis based on the (CF Ether-US Dollar Settlement Price), which is an independently calculated value based on an aggregation of the executed trade flow of the major ether spot exchanges.”
The “WisdomTree ethereum Trust” would be traded on the Chicago Board Options Exchange (Cboe) with a proposed maximum aggregate offering price of $1,000,000.
Three years later, WisdomTree has filed for withdrawal of the registration statement for this ETF along with all relevant documents. The asset manager claims that no securities related to this application have been or will be sold to investors. Additionally, WisdomTree has acknowledged that the filing fees for this registration statement, valued at $109.10, are non-refundable. They have also requested that these fees be put to future use.
As previously stated, WisdomTree's announcement comes shortly after VanEck… Uncovered VanEck plans to close its VanEck ethereum Strategy ETF (EFUT), an investment fund based on ethereum futures contracts. According to VanEck, this decision is based on an analysis of several factors, including “performance, liquidity, assets under management, and investor interest.” Trading activity on EFUT will stop on September 16th, followed by stock liquidation around September 23rd.
eth spot ETF market records $6 million loss
In other news, the ethereum ETF spot market had seen an outflow of $6 million in the last day according to eth/” target=”_blank” rel=”noopener nofollow”>data from Farside Investors. The nascent market’s total cumulative net flows now stand at -$568.5 million despite holding over 2% of ethereum’s market share. Meanwhile, data from CoinMarketCap shows ethereum trading at $2,237 after a 6.64% drop over the past day.
Featured image from Markets Insider, chart from Tradingview
