Van Eck CEO Affirms SEC’s Rejection of Ethereum ETF: What’s the Next Step?

Ethereum exchange-traded funds (ETFs) are expected to face rejection by the U.S. Securities and Exchange Commission (SEC) in May, according to VanEck CEO Jan van Eck. Van Eck’s insights shed light on the regulatory challenges that the cryptocurrency industry is currently facing. In an interview with CNBC, Van Eck stated that his firm’s application for a spot Ether ETF will “probably be rejected.” This comes after a prolonged period of regulatory inaction from the SEC regarding pending Ethereum ETF applications. VanEck and ARK Invest were among the first to file for spot Ether ETFs in the U.S., with final decisions scheduled for May 23 and May 24 respectively. However, the lack of feedback from the SEC has raised concerns and led Van Eck to express skepticism about the likelihood of approval. The SEC’s silence has fueled doubts among commentators, with some lowering the odds of approval. The concerns stem from Ethereum’s proof-of-stake (PoS) protocol, which raises regulatory hurdles for ETF approval due to the difference in participants from Bitcoin’s proof-of-work (PoW) protocol. Despite the uncertainty surrounding Ethereum ETFs, VanEck’s spot Bitcoin ETF, HODL, has seen significant success since its launch in January. With an inflow of $461.7 million, it ranks among the top newly launched funds, indicating the growing interest in Bitcoin among investors. As the industry awaits regulatory clarity on Ethereum ETFs, experts are closely monitoring developments from the SEC.