The Ethereum exchange-traded fund is expected to be rejected by the U.S. Securities and Exchange Commission (SEC) by May, according to Jan van Eck, CEO of investment firm VanEck. Van Eck's insights shed light on the regulatory hurdles facing the crypto industry as the SEC maintains radio silence regarding pending filings.
Will Ethereum ETF be rejected?
In an April 9 interview with CNBC, Jan van Eck delivered some somber news to Ethereum ETF supporters, saying his company's Spot Ether ETF application “will probably be rejected.” . This negative outlook comes amid a long period of no regulatory action by the U.S. Securities and Exchange Commission (SEC) regarding pending Ethereum ETF applications.
VanEck, along with Cathie Wood's ARK Invest, were among the first companies to apply for a Spot Ether ETF in the US, with final decisions expected on May 23 and May 24, respectively.
However, the lack of feedback from the SEC raised concerns within the industry, and Van Eck expressed skepticism about the likelihood of approval.
Pervasive “radio silence” from the SEC has fueled skepticism among commentators, with Bloomberg ETF senior analyst Eric Balciunas lowering the probability of approval from 70% to 35%. Fellow ETF analyst James Seifert also expressed concern, saying: lack of comments or communication from the SEC is a negative indicator.
Concerns about PoS
Meanwhile, the SEC's acceptance of Bitcoin's proof-of-work (PoW) protocol stands in contrast to concerns about Ethereum's proof-of-stake (PoS). Unlike Bitcoin miners, Ethereum PoS participants stake tokens, which raises the regulatory hurdles for Ethereum ETF approval.
Coinshare CEO Jean-Marie Mognetti expressed skepticism about the ETF's approval, saying, “I don't think anything will be approved at this time of year.” This distinction has raised eyebrows at the SEC and adds further complexity to the approval of Ethereum ETFs.
Bitcoin ETF success
Despite the uncertainty surrounding the Ethereum ETF, VanEck's Spot Bitcoin ETF, which trades under the ticker HODL, has been a huge success since its launch in mid-January. With $461.7 million in inflows, it ranks among the top newly launched funds, highlighting the growing interest in Bitcoin among investors.
Commenting on the success of Bitcoin ETFs, Jan van Eck described Bitcoin as a “mature asset” and noted that many investors are still looking to gain exposure to this asset.
Industry experts are closely monitoring SEC developments as regulatory uncertainty looms over the approval of Ethereum ETFs.
