Key Points:
- WisdomTree has requested to withdraw the WisdomTree Ethereum Trust S-1 filing with the SEC, initially submitted in May 2021.
- The decision reflects ongoing regulatory hurdles for Ethereum-based investment products in the U.S.
After more than three years from its first filing, asset manager WisdomTree requested the withdrawal of its S-1 filing for the WisdomTree Ethereum Trust with the U.S. Securities and Exchange Commission on September 6, 2024.
Read more: WisdomTree Lists Physical Bitcoin and Ethereum ETPs on London Stock Exchange
WisdomTree Ethereum Trust’s Filing Withdrawn
WisdomTree Ethereum Trust was first filed on May 27, 2021, to enable the issuance and selling of Ethereum securities. The company confirmed in its latest filing that no securities had or would be issued under this registration statement. In withdrawing the filing, WisdomTree recognized it would lose the fees it paid to the SEC but requested credit for those fees against any future use.
Despite the WisdomTree Ethereum Trust’s filing is now gone, the asset manager is still quite busy in the digital-asset space. This is a result of the offering of the spot Bitcoin ETF in the United States, as well as a number of Bitcoin and Ethereum exchange-traded notes in the United Kingdom.
U.S. Regulatory Hurdles Influence Ethereum-Based Investment Products
The move underlines the tough regulatory environment that surrounds cryptocurrency products. The SEC has been quite cautious about approving cryptocurrency ETFs, in particular regarding Ethereum, because of concerns about market manipulation, investor protection, and the regulatory oversight of the cryptocurrency exchanges. These challenges could drive WisdomTree’s strategic pivot.
In tandem, VanEck announced the closure of its futures-based Ether ETF. Insufficient demand for the product, said the firm, is behind the move while market inflows at the moment lead with spot cryptocurrency ETFs.
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