VanEck and CoinShares CEOs Anticipate Disapproval of Spot Ether ETFs by SEC
Summary:
VanEck CEO Jan van Eck predicts that the U.S. Securities and Exchange Commission (SEC) will not approve a spot Ether (ETH) exchange-traded fund in May. This forecast comes in the midst of an uncharacteristic silence from government regulators, who typically engage with feedback on applications. CoinShares CEO Jean-Marie Mognetti shares this pessimistic view, speculating no approvals will be granted in the remaining months of this year. The comments come amid a list of seven spot Ether ETFs still awaiting approval from the SEC.
The CEO of financial services company, VanEck, anticipates that the U.S. Securities and Exchange Commission (SEC) will not allow a spot Ether (ETH) exchange-traded fund to proceed in May. During an April 9 discussion with CNBC, Jan van Eck forecasted the likely dismissal of his company's Ethereum ETF application. He revealed that VanEck, alongside ARK Invest led by Cathie Wood, were the pioneers in filing for a U.S. Ether ETF, with their applications pending decisions on May 23 and May 24 respectively. Van Eck remarked that Ethereum isn't going through the usual process of receiving regulator feedback on applications that Bitcoin ETFs went through. Concurrently, CoinShares Chief Executive Officer Jean-Marie Mognetti expects no approvals to occur in the remaining months of the year. These views emerge amidst a period of SEC inactivity on seven Ether ETF applications awaiting decisions. Various analysts, including Bloomberg's Eric Balchunas, cite this "radio silence" as a possible factor contributing to the unlikely likelihood of May ETF approval. The final decision on VanEck's Ether ETF application is expected May 23, leading a line-up that includes fund issuers Grayscale, BlackRock, and Fidelity. Balchunas cut his approval chances from 70% to 35% by May, reiterating his position on April 9 on the pending approvals. His analysis aligns with van Eck's perspective, reducing approval odds to 35% in March after highlighting the SEC's lack of input on application documents. Other ETF analysts like James Seyffart argue the absence of feedback from the SEC is a negative indicator. VanEck's Bitcoin ETF, known as HODL, is among the top five of the 10 newly debuted funds, attracting $461.7 million since its January launch, according to data from Farside Investors. Jan Van Eck underscores the success of Bitcoin ETFs and identified Bitcoin as a growing asset, with a large number of investors yet to capitalize on the asset.
Published At
4/10/2024 6:50:06 AM
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