Sat, September 07, 2024 at 20:06

• 

  Kang-hoon

  • Hello, Annie.

  • Today, I have some significant news regarding the American investment company WisdomTree and their recent decision to withdraw their Ethereum Trust registration statement.

  • 
• Annie

  • Oh, really?

  • What happened exactly?🤔

  
• 

  Kang-hoon

  • On September 6, WisdomTree approached the US Securities and Exchange Commission (SEC) to retract the S-1 registration form of their exchange-traded fund (ETF) known as WisdomTree Ethereum Trust.

  • This comes three years after they initially filed the registration statement on May 27, 2021.

• Annie

  • Three years is a long time.

  • Why did they decide to withdraw it now?😮

  
• ADward

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• 

  Kang-hoon

  • It appears that the decision was influenced by a lack of demand.

  • This development comes just a few hours after another asset manager, VanEck, decided to close down its Ethereum futures ETF due to similar reasons.

• Annie

  • Lack of demand?

  • That's surprising.

  • Ethereum is quite popular, isn't it?🤷‍♀️

  
• 

  Kang-hoon

  • Indeed, Ethereum is popular.

  • However, the specific investment vehicles like these ETFs may not have garnered enough interest from investors.

  • VanEck cited factors such as performance, liquidity, assets under management, and investor interest as reasons for their decision.

• Annie

  • I see.

  • So, what happens to the WisdomTree Ethereum Trust now?🧐

  
• 

  Kang-hoon

  • WisdomTree has moved to withdraw the registration statement alongside all relevant exhibits.

  • They have also stated that no securities related to this application have been or will be sold to investors.

• Annie

  • And what about the filing fees they paid?

  • Can they get a refund?💸

  
• 

  Kang-hoon

  • No, the filing fees valued at $109.10 cannot be refunded.

  • However, WisdomTree has requested that these fees be directed toward future use.

• Annie

  • That's a small consolation, I suppose.

  • What about the broader Ethereum ETF market?

  • How is it doing?📉

  
• 

  Kang-hoon

  • The Ethereum spot ETF market has recorded an outflow of $6 million in the last day, according to data from Farside Investors.

  • 

  • The total cumulative net flows now stand at -$568.5 million.

• Annie

  • Wow, that's quite a significant outflow.

  • How is Ethereum itself performing in the market?📊

  
• 

  Kang-hoon

  • As of now, Ethereum is trading at $2,237, following a 6.64% decline in the last day, according to data from CoinMarketCap.

• Annie

  • That's quite a drop.

  • Do you think this news is a bad sign for the market?😟

  
• 

  Kang-hoon

  • Yes, I would consider this news to be a negative indicator.

  • The withdrawal of the ETF registration and the closure of another suggest a lack of confidence and demand in the market, which could lead to further declines in Ethereum's value.

  • Upon comprehensive consideration, this news is perceived as a 😱Bearish.