Although VanEck and ProShares have not yet shared the reasons behind this decision, analysts hypothesize that the SEC spoke with their representatives and was not very optimistic about an ETF based on Ethereum.
Investment asset management companies VanEck and ProShares petitioned the US Securities and Exchange Commission (SEC) to withdraw the applications to achieve the release of an Ethereum-based ETF filed this week.
This decision came from the companies as a statement. In the filings filed with the SEC, they reported that there are reconsiderations about the proposed termination since they had contemplated investing in Ethereum futures contracts, as well as in the media.
In this regard, representatives of VanEck and ProShares reported that they chose not to proceed with the registrations of their respective Ethereum-based ETFs. They did not offer further details that could have motivated this decision.
Bad Prospects for the Application
Due to the absence of an official explanation, many analysts and enthusiasts revealed theories suggesting that the companies reconsidered the decision, estimating that it would not receive approval from the regulatory entity, is gaining ground.
The assumption is that the firms have had discussions with the SEC, and the regulator has notified them that these ETFs could receive approval anytime soon. This decision has not affected any of the filings for Bitcoin-based ETFs. So there is still the possibility that some of these products would be approved shortly.
The CEO of Bitwise Asset Management, Matt Hougan, supported Roy’s statements and sympathized with the theory about the SEC approving an ETF based on the digital currency. The market would turn to be more open and see these proposals with different perspectives.
Both Roy and analysts suggest that the regulator has not yet clarified its position regarding Ethereum, given that the discussion is still raging about whether BTC should appear as a security, and whether its market conditions are safe enough to support these kinds of financial products.
The Race for the First Bitcoin ETF
As VanEck and ProShares reconsider their stance on an Ethereum-based ETF, the race for the world’s first-ever Bitcoin-based exchange-traded fund keeps going on. Analysts and enthusiasts are showing less and less optimism. This pessimism would materialize in the future.
The SEC postponed the verdict on the VanEck and WisdomTree applications, which for many users is a poor prognosis about the final result since they anticipate that the regulatory entity is only delaying the moment to apply a possible rejection. According to the Commission, concerns about volatility and possible manipulation of the digital currency market are still a struggle.
Meanwhile, entities like Galaxy Digital, GlobalX, Fidelity, and Ark Investment are waiting for the first verdict from the SEC. Grayscale might also join this race at some point, as it is getting a task force ready to analyze the pertinent considerations and submit its respective application.
By: Jenson Nuñez
