WisdomTree Terminates Ethereum ETF Registration
In a significant development within the investment landscape, American asset management firm WisdomTree has officially requested the withdrawal of its Ethereum Trust registration statement. This request was made to the US Securities and Exchange Commission (SEC) on September 6, 2023, exactly three years after its initial submission. The move coincides with VanEck’s decision to shut down its Ethereum futures ETF due to insufficient demand.
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WisdomTree, a renowned asset manager, initially filed the S-1 registration form on May 27, 2021, with the aim of introducing an exchange-traded fund (ETF) named “WisdomTree Ethereum Trust”. This ETF was designed to offer investors exposure to Ethereum while minimizing costs and liabilities. The filing stated:
“In seeking to achieve its investment objective, the Trust will hold ether and will value its Shares daily based on the [CF Ether-Dollar US Settlement Price], which is an independently calculated value based on an aggregation of executed trade flow of major ether spot exchanges.”
The proposed ETF was to be listed on the Chicago Board Options Exchange (Cboe) with a maximum aggregate offering price of $1,000,000. However, three years later, WisdomTree has decided to withdraw the registration statement along with all related exhibits. The company confirmed that no securities related to this application have been, or will be, sold to investors. Additionally, WisdomTree acknowledged that the filing fees, amounting to $109.10, are non-refundable and requested these fees be directed towards future use.
This announcement from WisdomTree came shortly after VanEck revealed its plans to close down the VanEck Ethereum Strategy ETF (EFUT), an investment fund based on Ethereum futures contracts. VanEck’s decision was influenced by several factors, including performance, liquidity, assets under management, and investor interest. Trading activity for EFUT will cease on September 16, with shares liquidation expected around September 23.
ETH Spot ETF Market Records $6 Million Outflow
In related news, the Ethereum spot ETF market experienced an outflow of $6 million in the past day, as reported by Farside Investors. This brings the total cumulative net flows of this emerging market to -$568.5 million, despite accounting for over 2% of the Ethereum market. According to CoinMarketCap, Ethereum is currently trading at $2,237, reflecting a 6.64% decline in the last 24 hours.
These developments indicate a challenging period for Ethereum-based investment vehicles, as market dynamics continue to evolve. Investors and market participants will be closely monitoring these shifts to gauge the future direction of Ethereum ETFs and the broader cryptocurrency market.
