Ethereum ETH

VanEck files the first Ether ETF proposal in the US

  • VanEck files an Ether ETF proposal to the US SEC
  • If approved, it would be the first Ether ETF to list in the United States
  • Canada has already approved three Ether ETFs

The United States Securities and Exchange Commission (SEC) is currently reviewing nine Bitcoin exchange-traded fund (ETF) applications. It will add an Ether ETF to the list after VanEck filed the first of its kind in the United States.

VanEck wants to list an Ether ETF

VanEck Associates Corp. has submitted an ETF application to the US SEC that would track the performance of Ether if approved. So far, most crypto-focused ETF applications in the United States have been for Bitcoin. This is the first one that intends to capture the performance of Ether.

According to Bloomberg, if approved, the ETF would allow retail and institutional investors to gain exposure to the second-largest cryptocurrency in the world by market cap without directly owning the crypto.

VanEck will work with Cboe BZX Exchange on the Ether ETF offering. This is the same exchange it partnered with for its Bitcoin ETF. This latest development comes after three Ether ETFs launched in Canada last month. In fact, Canada has been ahead of the United States in terms of approving cryptocurrency-focused ETFs. It has already approved a few Bitcoin and Ether ETFs, while the United States has rejected all previous applications. However, the US SEC is currently reviewing nine Bitcoin ETF applications.

James Seyffart, an ETF analyst for Bloomberg Intelligence, said, “Canada approving Ethereum ETFs so quickly on the heels of Bitcoin ETFs is part of the reasoning for this filing. I don’t see the SEC approving an Ethereum ETF until we have a Bitcoin ETF that has already begun trading. It’s possible that other issuers will follow suit because VanEck has been leading the charge with these filings in the last five months or so.”

Ether continues its rally

Ether is one of the best-performing cryptocurrencies so far in 2021. Its price is up by more than 300% since the start of the year, outperforming Bitcoin in the process. The cryptocurrency set a new all-time high above $3,700 this week and could attempt to touch the $4,000 mark over the coming days or weeks.

If the SEC approves VanEck’s proposal, it would be the first Ether ETF in the United States. The asset management firms are applying and listing crypto ETFs in other parts of the world. Similarly, WisdomTree also filed a Bitcoin ETF application with the US SEC recently. It has already listed an exchange-traded product in Germany and Switzerland.

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