WisdomTree scraps Ethereum Trust filing with SEC

WisdomTree, one of the largest US ETF providers, has retracted its Ethereum Trust S-1 filing with the Security and Exchanges Commission (SEC).

The New York-based asset manager first submitted its registration statement for the trust on May 27, 2021, and the US regulator has not granted or denied its application since then.

WisdomTree has requested that the SEC retain the fees for future applications

WisdomTree filed a withdrawal request to the SEC on September 6, asking for a retraction of its filed registration for its Ethereum Trust S-1. 

The company wrote that the Registration Statement was originally filed on May 27, 2021. It further confirms that no securities have been or will be issued or sold pursuant to the Registration Statement.

The platform noted that it would not ask for a refund for the registration fee paid to the SEC. However, it requested that the commission retain the fees for future applications following Rule 457(p) of the Securities Act.

WisdomTree applied for an Ether ETF in 2021 after VanEck

On May 7, 2021, VanEck applied for an Ether ETF registration with the SEC. Shortly after, on May 27, WisdomTree filed a registration for its Ethereum Trust S-1, stating that the Ether market was advancing to a stage where it functions efficiently and scales similar to the maturing Bitcoin market. 

At that time, the SEC had announced that ETF shares would be listed on the Chicago Board Options Exchange’s BZX Exchange. Additionally, the US regulator had just begun reviewing Bitcoin ETF applications from Fidelity and SkyBridge. 

While WisdomTree has chosen to scrap its submission request for the Ether ETF, rival asset manager VanEck has also declared it will close its futures-based Ether ETF. The company claimed it was in for a demand shortfall as spot cryptocurrency ETFs controlled its inflows. 

The VanEck Ethereum Strategy ETF (EFUT) shares will also end trading on September 16, and the fund’s assets are expected to be liquidated and returned to investors around September 23.

Just recently, WisdomTree received a Wells Notice from the SEC, signaling a potential enforcement action over alleged violations related to the management of three ESG-themed ETFs, which were closed in February due to low investor interest. Despite facing possible penalties, the company asserts its compliance with regulations.

WisdomTree CEO said, “WisdomTree has consistently acted in compliance with all applicable laws and regulations and intends to engage fully in the Wells Notice process, including responding to the SEC’s concerns.”