VanEck Files for Ethereum ETF as SEC Delayed Decision on Bitcoin ETF
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VanEck, an investment management, has filed with the US Securities and Exchange Commission (SEC) for an Ethereum-focused exchange traded fund (ETF). According to the document, the VanEck Ethereum Trust that issues common shares of beneficial interest that trade on the Cboe BZX Exchange.

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The ETF will reflect the performance of the MVIS CryptoCompare Ethereum Benchmark Rate. The ETF will also hodl ether (ETH) and will value its shares based on the benchmark rate. While the ETF does not plan on purchasing or selling ETH directly, its trustee — Delaware Trust Company — may direct the ETH Custodian "to sell ETH to pay certain expenses." However, it remains unknown who will hodl the ETF's ether as a custodian.

VanEck Launches New ETF Focused on Crypto Companies

VanEck's request for ETF focused on ether comes after the SEC delayed approval on its bitcoin-ETF until June. The watchdog said it decided to designate a longer period within which to take action on the proposed rule change so that it has "sufficient time" to consider on the application.

While, in general, it takes 45 days for the SEC to give a decision on whether to approve or disapprove en ETF, the watchdog can extend its review deadline up to 240 days. To date, the watchdog has rejected all bitcoin ETF applications, citing insufficient resistant to market manipulation and fraudulent activity concerns.

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