VanEck applies to withdraw Ethereum strategy ETF filings from SEC

VanEck applies to withdraw Ethereum strategy ETF filings from SEC

Cryptocurrency News
August 22, 2021 by Delnia
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Both products appeared to be targeted at providing Ether (ETH) exposure through futures contracts, pooled investment vehicles, and other exchange-traded instruments. It's unclear why the two asset management companies applied for and pulled the seemingly comparable Ethereum ETF app on the same day. Still, they both stated they hadn't sold any assets related to the possible offering.
VanEck applies to withdraw Ethereum strategy ETF filings from SEC

It’s unclear why both asset managers applied for and withdrew seemingly comparable Ethereum strategy ETF applications on the same day.

VanEck and ProShares have chosen not to pursue exchange-traded funds (EFTs) with Ether exposure, less than two days after submitting separate applications to the US Securities and Exchange Commission (SEC).

The legal status of VanEck and ProShares

Legal representatives for VanEck and ProShares stated in separate SEC filings on Friday that the companies had decided not to register their respective Ether-based exchange-traded funds. On Wednesday, VanEck filed a filing with the SEC to create an “Ethereum Strategy ETF,” while ProShares applied for an “Ethereum Strategy ETF” on the same day.

Gary Gensler, the Securities and Exchange Commission chairman, stated earlier this month that he would be more open to allowing ETFs based on crypto futures rather than direct exposure. The regulator was already reviewing VanEck’s Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds at the time. Despite this, the company later submitted a prospectus for a Bitcoin “strategic” ETF, a fund exposed to BTC futures contracts.

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SEC opens to comments on whether to approve VanEck Bitcoin and Ethereum Strategy ETF

The proposal was submitted before the commission’s deadline of June 17 to approve or disapprove the Bitcoin ETF, which had already been extended in April.

The U.S. Securities and Exchange Commission has issued an order to solicit public comment on the proposed rule changes. It is affecting VanEck’s Bitcoin exchange-traded fund.

ACCORDING TO A WEDNESDAY FILING, the SEC has not yet decided whether to accept or reject VanEck’s Bitcoin exchange-traded fund or ETF, but it “seeks and encourages interested individuals to make comments” on the proposal. The commission is specifically seeking the public to assess whether the Ethereum strategy ETF is vulnerable to manipulation and structured to prevent fraudulent and manipulative activities and practices.

The SEC also sought feedback on “the appropriateness of Bitcoin (BTC) as an underlying asset for an exchange-traded product,” as well as the market’s liquidity and transparency. National securities exchanges must comply with existing regulations to “protect investors and the public interest.

Anyone interested in submitting comments on the proposed Bitcoin ETF has 21 days from the date of publication of the order in the Federal Register. And rebuttals have until 35 days after the order is published in the same register. It can send public comments via the SEC website, email, or snail mail.

How to apply for Ethereum Strategy ETF

Following the asset manager’s withdrawal of a similar application in January in conjunction with Blockchain company SolidX, VanEck filed documents with the SEC in March to apply for an Ethereum Strategy ETF. The discussion period has already been extended by the commission once, from May 3 to June 17.

Before making a final judgment, the SEC can extend the deadline in 45-, 45-, 90-, and 60-day increments. Also it can be up to 240 days.

In the United States, no Bitcoin ETF authorized by authorities. Many do not anticipate the SEC to approve VanEck’s, Valkyrie Digital Assets’, and Fidelity Investments’ planned BTC exchange-traded funds anytime soon, given the SEC’s continuous delays. This year, many crypto ETFs approved by Canadian regulators. Including those from investment fund management 3iQ, Purpose Investments, Evolve Funds Group, and CI Global Asset Management.

The SEC has postponed its judgment on the VanEck Bitcoin ETF until June

According to the commission, it was “appropriate to define a longer duration” for the proposed Bitcoin ETF.

The Securities and Exchange Commission has extended the first 45-day clearance period for VanEck’s Bitcoin (BTC) exchange-traded fund or ETF.

According to a filing made by the SEC on Wednesday, the deadline for accepting or denying VanEck’s Bitcoin and Ethereum Strategy ETF will be pushed back 45 days, from May 3 to June 17.

In the submission, SEC Assistant Secretary J. Matthew DeLesDernier stated, “The Commission considers that it is appropriate to establish a longer period within which to take action on the proposed rule change so. That it has adequate time to evaluate the proposed rule change and the comments received.

The SEC and VanEck company

Following the asset manager’s withdrawal of a similar application, it had filed in January in conjunction with Blockchain company SolidX. VanEck submitted documents to the SEC last month to apply for a Bitcoin ETF. Valkyrie Digital Assets and Fidelity Investments have submitted registrations with the SEC in January and March. Respectively, to create Bitcoin ETFs.

Before making a final judgment, the regulatory authority can extend the discussion window up to 240 days. With 45-, 45-, 90-, and 60-day extensions announced individually. If the SEC continues to postpone its judgment on VanEck. The business may not get a definite response until the middle of November.

The SEC authorize a Bitcoin and Ethereum Strategy ETF

Regulators in the United States have yet to authorize a Bitcoin ETF, and given the SEC’s apparent reluctance. Many analysts do not expect one anytime soon. This year, many crypto ETFs have been licensed in Canada, including those from investment fund management 3iQ, Purpose Investments, Evolve Funds Group, and CI Global Asset Management.

In the United States, the SEC has yet to authorize a Bitcoin and Ethereum Strategy ETF. On the other side, VanEck, Valkyrie Digital Assets, Fidelity Investments, and others have suggested their own crypto ETFs. To seem to postpone making a judgment on a fund. The commission has often prolonged the discussion period or exposed the subject to public opinion.

Sum-up about Ethereum Strategy ETF

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References:
https://cointelegraph.com/news/vaneck-and-proshares-apply…

https://cointelegraph.com/news/vaneck-takes-new-approach…
https://cointelegraph.com/news/sec-pushes-decision-on-vaneck…

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