WisdomTree Withdraws S1 Filing for Ethereum ETF as VanEck Follows Suit
WisdomTree and VanEck, two prominent players in the cryptocurrency market, recently made significant decisions regarding their involvement in the spot Ethereum exchange-traded fund (ETF) arena. On September 6, both companies announced their withdrawal from the spot Ethereum ETF market. WisdomTree, still in the registration phase, requested the US Securities and Exchange Commission (SEC) to retract its Form S-1 Registration Statement for WisdomTree Ethereum Trust, citing Rule 477 under the Securities Act of 1933 as the basis for its request.
The fund manager initially submitted its application on May 27, 2021, aiming for the asset’s listing on the Chicago Board Options Exchange’s (Cboe) BZX Exchange. Interestingly, VanEck had also filed for its Ether ETF venture in the same month. WisdomTree, a renowned ETF issuer with over $108.76 billion in global assets under management, did not provide a specific reason for its decision to withdraw. Despite acknowledging that the regulator would not refund its filing fees, WisdomTree appealed for a credit of the fees for potential future use.
On the other hand, VanEck, with a total assets under management (AUM) of $107.7 billion as of June 30, disclosed its plans to delist ETHV from the Cboe after the market closes on September 16 and subsequently liquidate the fund on September 23. The company attributed several factors such as performance, liquidity, assets under management, investor interest, and operational considerations as the rationale behind its exit from the spot Ethereum ETF market. Notably, the asset in question had garnered $63 million in total net inflows since its launch a little over a month ago.
VanEck also shared that the highest daily inflow for ETHV stood at $19 million, while the lowest recorded a negative $4.8 million. However, most trading days on Farside Investors’ data showed zero inflows, indicating potential discrepancies in the reported performance numbers. Investors unable to sell their shares upon the liquidation of the VanEck spot Ethereum ETF will receive a cash liquidating distribution in the cash portion of their brokerage accounts equivalent to the net asset value of their shares.
These recent developments underscore the dynamic nature of the cryptocurrency market and the strategic considerations that companies like WisdomTree and VanEck must navigate to adapt to evolving market conditions and investor preferences. The decisions made by these industry players reflect the ongoing evolution and maturation of the cryptocurrency ecosystem, shaping the landscape for future developments and opportunities in the digital asset space.
