WisdomTree Withdraws Ethereum Trust Registration Statement After 3 Years

WisdomTree, an American investment firm, has recently made a move to withdraw its Ethereum Trust registration statement from the US Securities and Exchange Commission (SEC) after three years of its initial submission. This decision by WisdomTree closely follows a similar action taken by VanEck, another asset management company, which shut down its Ethereum futures ETF due to a lack of demand.

The filing made by WisdomTree on September 6 to the SEC requested the withdrawal of the S-1 registration form for the “WisdomTree Ethereum Trust” exchange-traded fund. The initial registration statement for this ETF was filed on May 27, 2021, with the aim of providing investors with exposure to Ethereum at lower costs and reduced liabilities. The proposed ETF was set to be traded on the Chicago Board Options Exchange (Cboe) with a maximum aggregate offering price of $1,000,000.

In the withdrawal request, WisdomTree clarified that no securities related to the application had been or would be sold to investors. The asset manager also noted that the filing fees amounting to $109.10 could not be refunded and suggested redirecting these fees for future use.

VanEck, on the other hand, announced its decision to close the VanEck Ethereum Strategy ETF (EFUT) based on Ethereum futures contracts. The rationale behind this move, as stated by VanEck, included factors such as performance, liquidity, assets under management, and investor interest. Trading activity for EFUT will cease on September 16, with shares liquidation expected around September 23.

Additionally, the Ethereum spot ETF market experienced an outflow of $6 million in a single day, according to data from Farside Investors. Despite holding over 2% of the Ethereum market, the total cumulative net flows in this emerging market have reached -$568.5 million. CoinMarketCap data reveals that Ethereum is currently trading at $2,237, following a 6.64% decline in the past day.

In summary, both WisdomTree and VanEck have made significant moves in the Ethereum investment space, with WisdomTree withdrawing its Ethereum Trust registration statement and VanEck closing its Ethereum Strategy ETF. The Ethereum spot ETF market also faces challenges, as evidenced by the recent outflow of funds and a decline in Ethereum’s trading price.