VanEck CEO Jan van Eck has voiced his skepticism regarding the approval of spot Ethereum (ETH) exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) in May.
During a recent interview with CNBC on April 9, the boss of the multi-billion dollar investment company stated that he believes his firm’s spot Ethereum ETF application will “probably be rejected.” VanEck and ARK Invest, led by Cathie Wood, were among the pioneers in filing for a spot in Ethereum ETF in the United States. Both 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 shed light on the regulatory process, explaining that regulators typically provide comments on ETF applications. However, in the case of Ethereum, there has been a notable absence of feedback. CoinShares CEO Jean-Marie Mognetti shared a similar pessimistic outlook, stating that he does not anticipate any approvals in the near future.
The SEC has been silent on the seven pending applications for spot Ethereum ETFs, contributing to the decreasing likelihood of an ETF approval in May. This “radio silence” between the regulator and prospective fund issuers has been noted by commentators, including Senior Bloomberg ETF analyst Eric Balchunas.
At the same time, the SEC has initiated a three-week comment period for three Ethereum spot ETF proposals submitted by Grayscale Investments, Fidelity, and Bitwise earlier this month. The announcement also follows the SEC discussing the Ethereum spot ETF proposed by asset manager Grayscale Investments with Coinbase back in March.
VanEck’s Ethereum ETF application is one of seven awaiting approval, alongside those from Grayscale, BlackRock, and Fidelity. Balchunas, who initially assigned a 70% chance of approval in May, has since revised his odds to 35%. He echoed van Eck’s sentiments, emphasizing the need for the SEC to provide comments and critical feedback.
ETF analyst James Seyffart also expressed concern over the SEC’s months-long inaction, questioning the reasons behind the lack of communication when the applications were anticipated.
Spot Bitcoin ETFs Experience Outflows
Meanwhile, spot Bitcoin (BTC) ETFs in the United States have experienced a shift in investor sentiment, with net outflows recorded since the start of the week following four consecutive days of inflows and a day seeing over $1 billion of inflows. Grayscale’s GBTC spot ETF was the primary contributor to this reversal, with single-day net outflows exceeding $303 million on Monday and an additional $154 million on Tuesday.
Despite the outflows from GBTC, other Bitcoin ETFs have seen net inflows during this period, with BlackRock’s iShares Bitcoin Trust and Bitwise Bitcoin ETF leading the charge. VanEck’s spot Bitcoin ETF, traded under the ticker HODL, currently ranks as the fifth largest among the ten recently launched funds, excluding Grayscale. Since its mid-January launch, HODL has attracted an inflow of $461.7 million, according to Farside Investors data.
Van Eck highlighted the success of Bitcoin ETFs, describing Bitcoin as a “maturing asset” and noting that there are still many investors who have yet to gain exposure to the cryptocurrency.
