VanEck CEO Jan van Eck has expressed doubt about the approval of spot Ether exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC) in May. In an interview with CNBC, van Eck stated that his firm’s spot Ethereum ETF application will likely be rejected. VanEck, along with ARK Invest, was among the first to file for a spot Ether ETF in the U.S. Both firms are awaiting a final decision scheduled for May 23 and May 24. Van Eck highlighted the regulatory process and the lack of feedback received from regulators, contributing to the decreased likelihood of approval.
CoinShares CEO Jean-Marie Mognetti has also expressed pessimism, stating that he does not foresee any approvals occurring soon. The SEC has remained inactive on the pending applications for spot Ether ETFs, leading to speculation among commentators, including Senior Bloomberg ETF analyst Eric Balchunas, about the possibility of approval in May. Van Eck’s Ether ETF application is one of seven awaiting approval, with Balchunas revising his odds from 70% to 35% due to the lack of comments or interactions from the SEC. ETF analyst James Seyffart also raised concerns about the SEC’s months-long inaction on the applications and the need for critical feedback.
In contrast to Ether ETFs, spot Bitcoin ETFs in the U.S. have seen a reversal in investor sentiment, with net outflows since the start of the week following four days of inflows. Grayscale’s GBTC spot ETF recorded significant single-day net outflows on Monday and Tuesday, contributing to the overall shift. Other Bitcoin ETFs, including BlackRock’s iShares Bitcoin Trust and Bitwise Bitcoin ETF, have experienced net inflows during this period. VanEck’s spot Bitcoin ETF, traded under the ticker HODL, is currently the fifth largest among recently launched funds, with inflows of $461.7 million since mid-January.
Van Eck emphasized the success of Bitcoin ETFs and described Bitcoin as a maturing asset with many investors still seeking exposure to the cryptocurrency. Despite the positive performance of Bitcoin ETFs, the approval of spot Ether ETFs remains uncertain, with van Eck and other commentators expressing doubts about the likelihood of approval in May. The prolonged inaction by the SEC on the pending applications and the lack of critical feedback have contributed to the speculation around the approval process for Ether ETFs. The uncertainty surrounding the approval of spot Ether ETFs contrasts with the performance of spot Bitcoin ETFs, which have experienced fluctuations in inflows and outflows in recent days.
