- VanEck’s CEO suggests that the likelihood of SEC approval for spot ether ETFs in May is low, citing lack of communication and ominous signs.
- Analysts, including Eric Balchunas, revise approval odds downward, attributing SEC’s prolonged silence as a major deterrent.
- Despite anticipation, major players like Grayscale, BlackRock, and Fidelity are poised alongside VanEck to introduce ether ETFs, awaiting SEC’s decisive ruling.
VanEck’s CEO has warned of slim odds for SEC approval of ether ETFs in May, citing regulatory silence. Analysts revise outlook downward.
Low probability of SEC approving spot ether ETFs in May
According to the Chief Executive Officer of the investment company VanEck, the probability of the United States Securities and Exchange Commission (SEC) giving the green light to spot Ether exchange-traded funds (ETFs) in May is quite low.
Also read: Hong Kong prepares to launch Ethereum ETFs ahead of US
Jan van Eck informed CNBC that the SEC’s lack of feedback on the list of outstanding ether ETFs is not a positive sign for approval by May, stating that “pins are dropping.”
VanEck and ARK invest’s pioneering role in spot ether ETF applications
In an interview with CNBC on April 9, VanEck’s CEO, Jan van Eck, reiterated his previous assertion that his firm’s application for a spot Ethereum ETF was unlikely to be granted approval by the Securities and Exchange Commission (SEC).
He emphasised that VanEck and Cathie Wood’s ARK Invest were among the first to submit applications for spot Ether ETFs in the United States, with final decisions due on May 23 and May 24, respectively.
“The way the legal process works is that regulators provide you with feedback on your application, and that occurred for many weeks before the Bitcoin ETFs were approved, but now, as far as Ethereum is concerned, pins are dropping.”
Jean-Marie Mognetti, CEO of CoinShares, shared a similarly pessimistic outlook, telling CNBC, “I don’t foresee anything being approved before the end of the year.”
VanEck’s comments come after a period of prolonged inactivity from the U.S. SEC regarding seven pending applications for spot Ether ETFs.
Furthermore, numerous experts, including Senior Bloomberg ETF analyst Eric Balchunas, have highlighted the ongoing “radio silence” between the regulator and potential fund issuers as a significant factor in the decreasing likelihood of an ETF approval in May.
The financial industry giants eager to launch ether ETFs
With a crucial decision from the SEC expected on May 23, VanEck’s spot Ether ETF application is at the forefront of seven prospective issuers awaiting approval.
Joining VanEck in their ambitious endeavour are Grayscale, BlackRock, and Fidelity, three titans of the financial industry who, despite their diverse backgrounds, are all aiming to launch an Ether ETF.
Balchunas has revised his chances of an Ether ETF being approved by May from 70% to 35%. In an X post on April 9, he reaffirmed his stance on the pending approvals, echoing the sentiments expressed by VanEck. The analyst had initially lowered his approval odds to 35% back in March.
“As we’ve said, we need the SEC to provide feedback on the filing documents (the “critical feedback” he mentions), and that simply isn’t happening, not even in person. Silence is violence.”
ETF analyst James Seyffart shared a similar perspective, stating that “zero comments/interactions is a negative sign.”
“There’s no justification for the SEC to have done absolutely nothing for months when we knew this was on the horizon,” he added.
Since its launch in mid-January, VanEck’s spot Bitcoin ETF, trading under the ticker HODL, has become the fifth largest among the 10 newly launched funds (excluding Grayscale). Data from Farside Investors reveals that it has attracted an inflow of $461.7 million.
VanEck commented on the success of Bitcoin ETFs, describing Bitcoin as a “maturing asset.” He also noted that there are still many investors who have not yet gained exposure to the asset.
