WisdomTree withdrew its 2021 Ethereum Trust ETF application, marking a strategic shift as demand for spot crypto ETFs rises.
VanEck is shutting down its Ethereum futures ETF due to low demand, underscoring the popularity of spot-based crypto ETFs.
WisdomTree and VanEck’s Ethereum ETF moves reflect growing dominance of spot crypto ETFs, impacting futures-based products.
WisdomTree Wants Registration Statement for Its 2021 Ethereum Trust De-registered VanEck open-end is closing their Ethereum and futures ETF in matter of hours saying that investors don't want it. At first, WisdomTree intended to develop an ETF that would give investors "cheaper" access to Ethereum.
https://twitter.com/kuntect/status/1832508077763129393
In a September 6 application to the SEC, WisdomTree sought the removal of its registration statement. "WisdomTree Ethereum Trust" was originally intended to be an exchange-traded fund that was listed on the Chicago Board Options Exchange, or Cboe.
For the fund, the asset manager had set a maximum aggregate offering price of $1 million. In addition to confirming that no stocks linked to the application were sold, WisdomTree indicated that the registration fees will be repaid for future use.
VanEck Follows Suit
Besides WisdomTree’s withdrawal, VanEck also decided to close its VanEck Ethereum Strategy ETF (EFUT). The fund's closure was attributed to low demand, despite the increasing popularity of spot cryptocurrency ETFs. Trading for the VanEck Ethereum futures ETF will cease on September 16, with shares being liquidated by September 23.
Significantly, both WisdomTree and VanEck had initially filed their Ethereum ETF applications in 2021, as the Ether market gained maturity. However, the recent closures highlight the growing dominance of spot-based cryptocurrency ETFs in the market, affecting the futures-based offerings.
Potential SEC Action Looms
Moreover, WisdomTree could face action from the SEC over alleged issues with how it managed three ESG-themed ETFs that were shut down earlier this year due to low investor interest. Despite this, the company firmly maintains that it has always followed the rules and plans to address the SEC’s concerns directly.
An illustration of how investor preferences are changing is the withdrawal of WisdomTree's Ethereum Trust and the closure of VanEck's Ethereum futures ETF. Futures-based products are becoming less attractive as spot-based bitcoin ETFs catch on in the market.
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