Just days after filing their applications to launch Ethereum-based exchange-traded funds, VanEck and ProShares have abruptly withdrawn them. The two firms aimed to offer investors exposure to regulated Ether futures in a long-shot bid to obtain approval from the US Securities and Exchange Commission. According to Bloomberg’s senior ETF analyst Eric Balchunas, VanEck and ProShares likely held a “Godfather-style” conference call with the SEC during which the regulator rejected Ether-tied products.
Now ProShares is withdrawing their Ether ETF filing. SEC may have had a conf call, Godfather-style. Ether, you’re out. pic.twitter.com/ZZ4b5zpx54— Eric Balchunas (@EricBalchunas) August 20, 2021
According to the analyst, the SEC’s rejection of the two Ether proposals may be good news for Bitcoin ETF approval prospects because it shows that the agency is willing to take “baby steps” with the largest cryptocurrency before moving on to something more arcane.
I’m curious to hear what staff has to say about these filings.
Despite the launch of multiple Bitcoin ETFs in Canada, Brazil, and other countries, the SEC has yet to approve such a product in the United States.