SEC Unlikely to Approve Spot Ether ETFs in May 📉

SEC Unlikely to Approve Spot Ether ETFs in May 📉


VanEck CEO Doubts Approval of Spot Ether ETFs in the US

VanEck CEO Jan van Eck expressed skepticism about the approval of spot Ether exchange-traded funds (ETFs) by the US Securities and Exchange Commission in May. In a recent interview with CNBC, van Eck mentioned that his firm’s spot Ethereum ETF application is likely to be rejected. VanEck, along with ARK Invest, were among the first to file for a spot Ether ETF in the US. The final decision on their applications is expected by May 23 and May 24.

van Eck Highlights Lack of Feedback

Van Eck discussed the regulatory process, emphasizing the lack of feedback from regulators regarding the Ether ETF applications. CoinShares CEO Jean-Marie Mognetti shares a similar pessimistic view, suggesting that approvals are unlikely in the near future. The SEC has been inactive on the pending applications for spot Ether ETFs, leading to doubts about approval in May. Commentators like Eric Balchunas note the ongoing silence between the regulator and fund issuers.

  • van Eck and Mognetti express doubts about Ether ETF approvals
  • Regulatory feedback lacking in the approval process
  • SEC’s inaction raises concerns about ETF approval

VanEck’s Ether ETF Application Under Review

Van Eck’s Ether ETF application is one of seven awaiting approval, alongside applications from Grayscale, BlackRock, and Fidelity. Balchunas, who previously estimated a 70% chance of approval in May, has revised his odds to 35%. Industry analysts like James Seyffart also highlight the absence of comments or interactions from the SEC, questioning the reasons behind the prolonged period of inaction.

Spot Bitcoin ETFs Experience Outflows

Spot Bitcoin ETFs in the US have seen a shift in investor sentiment, with net outflows recorded since the start of the week. Grayscale’s GBTC spot ETF contributed significantly to this shift, reporting substantial outflows on consecutive days. While GBTC experienced outflows, other Bitcoin ETFs like BlackRock’s iShares Bitcoin Trust and Bitwise Bitcoin ETF saw net inflows during the same period.

  • Spot Bitcoin ETFs see a reversal in investor sentiment
  • Grayscale’s GBTC records significant outflows
  • BlackRock and Bitwise Bitcoin ETFs attract inflows

VanEck’s HODL Bitcoin ETF Success

VanEck’s spot Bitcoin ETF, known as HODL, is now the fifth largest among recently launched funds, excluding Grayscale. Since its launch in mid-January, the HODL ETF has attracted inflows totaling $461.7 million. Van Eck acknowledges the success of Bitcoin ETFs, highlighting Bitcoin’s status as a maturing asset and the growing interest from investors looking to enter the cryptocurrency market.

Hot Take: ETF Approval Uncertainty Looms Over Crypto Market

As regulatory uncertainty persists regarding the approval of spot Ether and Bitcoin ETFs, the crypto market faces challenges in gaining mainstream acceptance. The lack of feedback from the SEC and the prolonged period of inaction have cast doubt on the likelihood of ETF approvals in the near future. Investors and industry experts are closely monitoring the developments, hoping for clarity and regulatory direction in the coming months.

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Sources:
– [CNBC Interview with Jan van Eck](https://www.cnbc.com/video/2024/04/09/bitcoin-and-gold-moving-in-tandem-vaneck-ceo-says.html)
– [Twitter Post by Eric Balchunas](https://twitter.com/EricBalchunas/status/1777403216696660395?ref_src=twsrc%5Etfw)

SEC Unlikely to Approve Spot Ether ETFs in May 📉
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