• Home
  • Bitcoin
  • VanEck Settles with SEC for $1.75M Penalty Over Undisclosed Influencer in ETF Launch
VanEck Settles with SEC for $1.75M Penalty Over Undisclosed Influencer in ETF Launch

VanEck Settles with SEC for $1.75M Penalty Over Undisclosed Influencer in ETF Launch

The SEC Fines VanEck $1.75 Million Over ETF

The U.S. Securities and Exchange Commission (SEC) has imposed a $1.75 million fine on VanEck, an ETF issuer. VanEck agreed to pay the fine without admitting or denying the charge brought against it. The charge relates to VanEck’s failure to disclose a social media influencer’s involvement in the launch of its VanEck Social Sentiment ETF, which trades under the BUZZ ticker on NYSE Arca.

Failure to Disclose Influencer’s Role

VanEck’s BUZZ ETF aims to track 75 large-cap securities based on positive investor sentiment gathered from social media, news articles, and blog posts. The SEC alleged that VanEck used an unnamed influencer to promote the fund but did not disclose this information to investors. The proposed licensing fee structure for the influencer was tied to the fund’s size, meaning they would receive a greater percentage of the management fee as the fund grew.

Involvement of Dave Portnoy

Dave Portnoy, president of Barstool Sports, played a significant role in the launch of the BUZZ ETF. However, the SEC did not mention him by name in its complaint. VanEck is known for its Bitcoin Trust and has also proposed a spot Ethereum ETF, which is currently under review by the SEC.

Hot Take: Fine Highlights Importance of Transparency

The SEC’s fine on VanEck underscores the significance of transparency in the crypto industry. It is crucial for companies to disclose any relevant information, including influencers’ involvement, to investors. Failure to do so can result in regulatory action and potential financial penalties. This case serves as a reminder that full transparency is essential in maintaining trust and credibility within the crypto market.

Read Disclaimer
This content is aimed at sharing knowledge, it's not a direct proposal to transact, nor a prompt to engage in offers. Lolacoin.org doesn't provide expert advice regarding finance, tax, or legal matters. Caveat emptor applies when you utilize any products, services, or materials described in this post. In every interpretation of the law, either directly or by virtue of any negligence, neither our team nor the poster bears responsibility for any detriment or loss resulting. Dive into the details on Critical Disclaimers and Risk Disclosures.

Share it

VanEck Settles with SEC for $1.75M Penalty Over Undisclosed Influencer in ETF Launch