Ethereum ETFs will ‘probably be rejected’ — VanEck CEO

The CEO of investment company VanEck expresses doubt that the SEC will give its approval for a Ether (ETH) spot ETF before May.

During an interview with CNBC on April 9, Jan van Eck expressed that it is likely their Ethereum Spot ETF proposal will not be approved.

Two applications for an Ether ETF were submitted by my company and ARK Invest’s Cathie Wood in the US, making us the first filers. A decision is anticipated on these applications on May 23rd for my firm and May 24th for ARK Invest.

“The way the legal process goes is that regulators will give you comments on your application and that happened for weeks and weeks before the Bitcoin ETFs, but now pins are dropping as far as Ethereum is concerned.”

Jean-Marie Mognetti, CEO of CoinShares, expressed similar pessimism to CNBC, stating, “I don’t anticipate anything getting approved before the end of the year.”

After a long wait, Van Eck made some remarks in response to the Securities and Exchange Commission (SEC) not taking action on seven proposed Ether ETFs for an extended time.

Ethereum ETFs will ‘probably be rejected’ — VanEck CEO

Some analysts, including Eric Balchunas from Bloomberg ETF, have pointed out the lack of communication between the regulatory body and potential ETF issuers as a significant factor making a May approval appear less probable.

The decision on approving Van Eck’s Ether ETF application is scheduled for May 23. Among the seven fund issuers, Grayscale, BlackRock, and Fidelity are among those waiting for a final verdict.

Ethereum ETFs will ‘probably be rejected’ — VanEck CEO

Balchunas lowered his formal odds for an Ether ETF approval by May from 70% to 35%. The analyst reiterated his stance on the pending approvals and echoed van Eck’s sentiments in a post on X on April 9. The analyst reduced his approval odds to 35% in March. 

“As we’ve said, need SEC to give comments on the filing documents (the “critical feedback” he mentions) and that still ain’t happening, even in person they offering nothing. Silence is violence.”

In simpler terms, James Seyffart, an ETF analyst I work with, expressed a similar viewpoint, stating that “lack of comments or engagement is a warning signal.”

He remarked, “It’s inexplicable why the SEC remained inactive for several months given that we had prior knowledge of this issue.”

VanEck’s Bitcoin ETF, identified by the ticker HODL and ranked as the fifth largest among the ten recently introduced funds (excluding Grayscale), has experienced an inflow of approximately $461.7 million since its debut in mid-January, according to Farside Investors’ data.

In simpler terms, Jan van Eck remarked that Bitcoin is growing up as an investment asset. He also pointed out that there are still numerous investors who have not yet had the opportunity to invest in Bitcoin.

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2024-04-10 07:03