VanEck and ProShares file for ETH futures ETFs but announce withdrawal days later

Two more Ethereum-based exchange-traded funds were filed this week, bringing the total to 23 crypto ETF requests so far in 2021. The request, however, was withdrawn two days later.

VanEck and ProShares were the last two companies to unveil institutional product plans focused on Ethereum. According to documents filed with the US Securities and Exchange Commission on August 18, VanEck was attempting to launch an “Ether Strategy ETF”, while ProShares is calling its proposed product an “Ether Strategy ETF”.

Less than two days after submitting separate requests to the US Securities and Exchange Commission, VanEck and ProShares decided to withdraw requests for exchange-traded funds with exposure to Ether.

Both ETFs aimed to provide exposure to Ethereum by investing in ETH futures contracts, as well as bundled investment vehicles and other exchange traded products that have exposure to ETH. Funds would not be buying Ethereum directly according to the documents.

Both companies have already filed for Bitcoin ETFs, however, the SEC has not yet approved any. Earlier this month, Kryptoin filed an order from ‘Ethereum ETF Trust’ marking the 21st order in 2021, and the last two bring that total to 23.

Speaking to Blockworks, ETF Store President Nate Geraci said, “Given the latest SEC messages … it seems very likely that a Bitcoin futures ETF will be approved before an Ether futures product” before to add:

“It’s not unreasonable to think that a Bitcoin futures ETF could be approved before the end of the year.”

ProShares is a division of ProFunds Group that manages several investment funds with combined assets under management of around $50 billion, while VanEck has a total AUM (assets under management) of around $65 billion .

On May 7, VanEck filed for its ETF Ethereum, and a few weeks later, on May 28, Wisdom Tree filed for a similar fund with the SEC. In June, the ProFunds Group presented the “ProShares S&P Kensho Global Crypto & Blockchain ETF” to the SEC.

On Aug. 10, the Cointelegraph reported that SEC chairman Gary Gensler hinted that he would be more open to accepting ETFs based on crypto futures than on direct exposure. VanEck presented another prospectus for an exchange-traded Bitcoin strategy fund on August 9th.


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