According to the CEO of Vaneck, the applications for spot Ethereum exchange-traded funds (ETFs) may be denied in May when the U.S. Securities and Exchange Commission (SEC) meets its decision-making deadline. His company is one of the ones applying to have a spot ether ETF approved. The CEO emphasized, “As far as Ethereum is concerned, pins are dropping right now.”
Van Eck Predicts That the SEC Will Reject Spot Ether ETFs in May.
The U.S. Securities and Exchange Commission (SEC) must make a decision by May 1 about the approval of spot Ethereum exchange-traded funds (ETFs). Applications from Cathie Wood-led Ark Invest and Vaneck asset managers are among those that need to be approved. The largest asset management in the world, Blackrock, and Fidelity are among the several spot bitcoin ETF issuers that have registered to introduce a spot ether ETF.
At the Paris Blockchain Week event on Tuesday, Vaneck CEO Jan Van Eck told CNBC that he does not anticipate the SEC approving applications for spot ether ETFs in May. He declared:
We were the first applicants for ethereum in the United States, along with Ark, Cathie Wood, thus we figure we are first in line to be rejected in May.
Pins are currently falling as far as Ethereum is concerned, Van Eck continued. “The way the legal process goes is the regulators will give you comments on your application, and that happened for weeks and weeks before the bitcoin ETFs.
There is growing skepticism regarding the likelihood of spot ether ETFs receiving SEC approval. For instance, JPMorgan stated last week that if the SEC denies the applications in May and then faces legal action, like it did with Grayscale Investments and Ripple in the previous year, the SEC will probably authorize spot Ethereum ETFs.
Jean-Marie Mognetti, CEO of Coinshares, was equally pessimistic about the chance of such acceptance in the foreseeable future. “We are observing the Ethereum decision very, very closely,” he said to CNBC on Tuesday. He expressed his opinion that it could be challenging for a proof-of-stake methodology to receive SEC clearance by saying:
Nothing seems to be approved thus late in the year, in my opinion.
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