Crypto-related exchange-traded funds [ETF] have had a tough time in the US. Asset management firm, VanEck is a popular one in the crypto-verse. However, the platform is known for being shot down with regards to Bitcoin ETFs by the Securities and Exchange Commission [SEC] of the US. Now, in a new turn of events, VanEck as well as another asset manager ProShares decided to withdraw its latest Ether ETF application.
ETFs have been a sensitive topic for the US financial watchdog, the SEC. While several countries have already approved Bitcoin or crypto related ETFs. US decided to take it slow. The SEC has been consistently delaying or disapproving crypto ETF applications. This has not only caused the US to take a back seat in the crypto game, but has also forced US citizens to miss out these ETF services.
While VanEck submitted its application for an Ethereum Strategy ETF back in May itself, ProShares filed its application on the same day. However, once VanEck decided step back, ProShares followed suit.
VanEck takes a backseat on Ether ETFs
In two separate filings, the aforementioned firms decided to take a step back on the same day. While none of the firms revealed the reason behind their sudden decision, the crypto community began laying out speculations. Several noted that the SEC would have expressed reluctance in approving an ETH ETF which would have further forced them to steer away.
Eric Balchunas, Senior ETF Analyst at Bloomberg, shared his opinion about the same on Twitter. His tweet read,
He further stated,
“As long we ONLY see the Ether ones ejected, I’d say that’s decent news for bitcoin ETF. Sort of like them saying, look, let’s baby step this, only bitcoin rn. Stop exciting the crypto trade pubs with all these filings.”
Another prominent firm, WidsomTree hasn’t pulled out from the ETF ETF race.