In a revealing conversation with CNBC, Jan van Eck, the CEO of VanEck, shared his pessimistic outlook on the prospects of Ethereum ETFs gaining approval from the U.S. Securities and Exchange Commission (SEC) anytime soon. With the deadline for a decision on VanEck’s and other firms’ applications fast approaching, the silence from the SEC signals a tough road ahead for Ethereum ETF hopefuls.
A Challenging Path to Approval
Jan van Eck, at the helm of the investment firm VanEck, expressed considerable doubt that the SEC would greenlight any spot Ether exchange-traded funds (ETFs) in the near future. During an April 9 interview, he disclosed that his firm’s application for a spot Ethereum ETF, alongside other applicants like Cathie Wood’s ARK Invest, is likely headed for rejection. The decision on these applications, set for late May, is eagerly anticipated by the crypto and investment communities.
Van Eck highlighted the unusual quiet from the SEC as a troubling sign, noting the contrast to the communication flurry that preceded Bitcoin ETF approvals. This lack of feedback from the regulator has led several analysts, including Van Eck, to adjust their expectations negatively for Ethereum ETFs’ immediate future.
Analysts Echo Concerns
The sentiment is not isolated to Van Eck alone. CoinShares CEO Jean-Marie Mognetti also expressed skepticism, foreseeing no approvals in the current year. Similarly, Senior Bloomberg ETF analyst Eric Balchunas drastically cut the odds of a May approval, aligning with the general consensus that the SEC’s silence is a foreboding signal.
This period of regulatory inactivity has left seven Ether ETF applications, including those from heavyweights like Grayscale, BlackRock, and Fidelity, in limbo, fostering a climate of uncertainty among investors and fund issuers alike.
The Broader ETF Landscape
Despite the hurdles facing Ethereum ETFs, the realm of cryptocurrency ETFs has seen some success, particularly with Bitcoin. VanEck’s own spot Bitcoin ETF, trading under the ticker HODL, has attracted significant investment, accumulating over $461.7 million since its launch. This success story underscores Bitcoin’s growing acceptance as a “maturing asset,” according to Jan van Eck, who sees a vast untapped investor base for the cryptocurrency.
