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VanEck CEO Skeptical of May Ethereum ETF Spot Approval

VanEck CEO Jan van Eck expressed doubts about the U.S. Securities and Exchange Commission’s (SEC) approval of a spot Ethereum (ETH) exchange-traded fund (ETF) in May.

In an interview with CNBC on April 9, the boss of the multi-billion dollar investment firm said he believed the company’s application for a spot Ethereum ETF “will likely be rejected.” ARK Invest, led by VanEck and Cathie Wood, was one of the pioneers to apply for an Ethereum ETF seat in the United States. The companies are currently awaiting the SEC’s final decision, which is scheduled for May 23 and May 24, respectively.

Van Eck: Lack of feedback from regulators

Van Eck elaborated on the regulatory process, explaining that regulators typically provide comments on ETF applications. However, in the case of Ethereum, there is a distinct lack of feedback. CoinShares CEO Jean-Marie Mognetti shared a similarly pessimistic outlook, saying he did not expect any approvals in the near future.

The U.S. Securities and Exchange Commission (SEC) has remained silent on seven pending Ethereum ETF spot applications, leading to a decrease in the likelihood of ETF approval in May. Commentators including Bloomberg ETF senior analyst Eric Balchunas noted this “radio silence” between regulators and potential fund issuers.

Meanwhile, the SEC has launched a three-week comment period on three Ethereum spot ETF proposals submitted earlier this month by Grayscale Investments, Fidelity and Bitwise. Previously, the U.S. Securities and Exchange Commission (SEC) held discussions on the Ethereum spot ETF proposed by asset management company Grayscale Investments and Coinbase in March.

VanEck’s Ethereum ETF application is one of seven awaiting approval, along with applications from Grayscale, BlackRock and Fidelity. Balciunas initially gave the chance of approval at 70% in May, later revising it to 35%. He echoed Van Eck’s sentiments, stressing the need for the SEC to provide commentary and critical feedback.

ETF analyst James Seyffart also said Expresses concern over months of SEC inactionquestioning the reasons for the lack of communication in anticipation of the application.

Spot Bitcoin ETFs experience outflows

Meanwhile, the U.S. spot Bitcoin (BTC) ETF has experienced a shift in investor sentiment, with net outflows following four consecutive days of inflows since the start of the week, with single-day inflows exceeding $1 billion. Grayscale’s GBTC spot ETF was a major contributor to the reversal, with single-day net outflows of more than $303 million on Monday and an additional $154 million on Tuesday.

Despite outflows from GBTC, other Bitcoin ETFs also saw net inflows during the period, with BlackRock’s iShares Bitcoin Trust and Bitwise Bitcoin ETF leading the way. VanEck’s Spot Bitcoin ETF (ticker HODL) currently ranks fifth among 10 recently launched funds (excluding Grayscale). HODL has attracted $461.7 million in inflows since its launch in mid-January, according to Farside Investors.

Van Eck highlighted the success of Bitcoin ETFs, describing Bitcoin as a “mature asset” and noting that there are still many investors who have not yet been exposed to the cryptocurrency.


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