VanEck CEO Say SEC Will Probably Reject ether ETFs Application in May

Jimmy Aki
Last Updated:

Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.

On April 9, VanEck CEO Jan Van Eck expressed his doubt regarding the approval of the spot Ether exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) in May 2024, which is the deadline for their decision.

VanEck CEO’s skepticism stems from the SEC’s lack of communication and prolonged regulatory inaction on filed Ether applications.

VanEck CEO Indicates “Pins Are Dropping” for Ether ETF Approval

Jan Van Eck stated in an interview with CNBC that his firm was the first to file for Ether ETF in the United States, alongside Cathie Wood’s ARK Invest, but does not feel confident that the SEC will approve the submitted applications.

https://www.cnbc.com/video/2024/04/09/bitcoin-and-gold-moving-in-tandem-vaneck-ceo-says.html

VanEck and ARK Invest are awaiting a final decision by the US regulatory agency on May 23 and May 24, 2024, respectively, with other companies such as BlackRock and Fidelity in line for approval as well.

However, VanEck CEO highlighted that the regulatory process for Ether ETFs stands in stark contrast to that of Bitcoin ETFs.

He said,

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

VanEck CEO’s doubt aligns with several commentators, analysts, and case observers, particularly comments from Eric Balchunas, the Senior ETF analyst for Bloomberg.

On March 11, Balchunas shared his thoughts on X over a 35% likelihood of an Ether ETF approval by the May deadline.

Other ETF enthusiasts believe SEC Chair Gary Gensler’s position on Ethereum could play a part, arguing that Gensler still believes Ether classifies as a security, not a commodity.

Corroborating Balchunas’ position on Ether ETF approval, James Seyffart stated in an X post that the SEC has not been engaging with the issuers, which is the “exact opposite of Bitcoin.”

Bitcoin ETFs Scores More Points Amid Ether ETFs Approval Stance

Cryptocurrency ETFs have taken the front stage in 2024, generating strong support from the crypto community since the SEC approved the first spot Bitcoin ETFs on January 10.

Bitcoin ETFs continue to generate an influx of funds into BTC, which has driven the crypto asset price to new heights. As of last week, the BTC ETF saw a continued positive sentiment with inflows totalling $663 million, which has pushed the total inflows for 2024 to a record high of $13.5 billion.

Ether ETF
Source: CoinsShares

As Bitcoin ETFs continue to score more points, the Ethereum ETF is still waiting for its turn. There has been an increase in ETH price this past week, with the hope that the SEC will approve an Ether-backed ETF.

Ethereum trades at $3,526 per token, recording 10.70% and 6.78% gains margins in the last 30-day and 7-day margin, respectively.

Meanwhile, BlackRock CEO Larry Fink has recently opined on “The Claman Countdown” show that if the SEC classifies Ethereum as a security, an Ether ETF could still exist

His sentiment is in consonance with the confidence he has been expressing over Bitcoin’s long-term future. Therefore, Fink’s positive stance has given hope to ETF enthusiasts and crypto investors keen on exploring the exposure of Ether ETF on ETH crypto.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.