The CEO of financial giant VanEck reportedly says the US Securities and Exchange Commission (SEC) is likely to reject bids to launch Ethereum (ETH) exchange-traded funds (ETFs).
Although many financial institutions had approved their bids for Bitcoin (BTC) ETFs earlier this year, Jan van Eck, CEO of VanEck, told CNBC in an interview that he does not think the regulator will give ETH ETFs the green light.
“We were the first to also apply for Ethereum in the US, and we and [Ark Invest CEO] Cathy Wood is probably first in line for May, probably rejected…
The way the legal process works is that the regulators give you comments on your application, and that happened for weeks before the Bitcoin ETFs – and right now the pins are falling as far as Ethereum is concerned.”
The SEC approved BTC ETFs in January after years of rejecting them following a court order to reconsider the applications. ETFs give traders exposure to an asset without having to actually purchase it.
In March, the regulator announced that it needed more time to consider the possibility of an Ethereum-based ETF and would postpone its decision by 60 days until May.
However, some crypto companies – such as US crypto exchange Coinbase and blockchain software provider Consensys – are pushing the SEC to approve ETH ETFs, saying Ethereum’s cybersecurity and resilience to fraud is even greater than Bitcoin’s .
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