This weekend, VanEck announced the closure of one of its Ethereum (ETH) ETFs, while WisdomTree withdrew the listing application for its own. Is this a negative signal for Ethereum ETFs as a whole?
VanEck Delists Ethereum (ETH) ETF
At the end of the week, Asset manager VanEck has announced the closure of one of its ETFsnamely the Ethereum Strategy ETF (EFUT), a vehicle based on ETH Future. This decision comes barely a year after the launch of this product.
In a press release, the company detailed its choice:
As the sponsor of the VanEck ETFs, VanEck continually monitors and evaluates its ETF offerings based on a number of factors, including performance, liquidity, assets under management and investor interest, among others. The decision to liquidate the Fund was made based on an analysis of these factors and other operational considerations.
So, VanEck ETF listing to be officially halted on September 16and its remaining holders will be reimbursed on September 23.
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Until this announcement, EFUT had $21.24 million in assets under management, compared to $55.56 million for its cousin based on ETH spot, which remains maintained.
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WisdomTree also withdraws a listing project
In parallel with this announcement, WisdomTree also withdrew a request for approval of a Form S-1 for a spot Ethereum ETF. with the Securities and Exchange Commission (SEC). The first application for the fund in question was made on May 27, 2021, and was not part of the wave of ETFs approved this summer.
However, the asset manager wants the SEC to credit the costs incurred by this procedure for a future project:
The Company acknowledges that no refund will be made for fees paid to the Commission in connection with the filing of the registration statement. However, pursuant to Rule 457(p) under the Securities Act, the Company requests that all fees paid to the Commission in connection with the filing of the registration statement be credited for future use.
To date, all U.S. Ethereum ETFs represent $6.22 billion in assets under managementcompared to $48.33 billion for Bitcoin ETFs.
Thus, this amount represents a 7.77 times lower capitalization for Ethereum ETFs, while on the cryptocurrencies capitalization side, that of ETH is 3.9 times lower than BTC. Such a difference between these two ratios can highlight the preference of institutional investors for BTC, in a context where ETH is also underperforming. It can also open the debate on the usefulness of ETFs indexed to other cryptos, such as Solana (SOL) for example.
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At the time of writing, ETH is trading at $2,280, up 2% in 24 hours.
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Sources: VanEck, WisdomTree
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Since 2021, I have devoted my free time to seriously training myself on cryptocurrencies in order to acquire as much knowledge and credibility as possible. I often have the opportunity to conduct interviews with influential figures in the blockchain industry. I also conduct in-depth analyses on Web3 themes to offer exclusive content to Cryptoast readers.
Vincent Maire
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