VanEck CEO Jan van Eck has expressed doubt regarding the approval of spot Ether exchange-traded funds (ETFs) by the United States Securities and Exchange Commission in May. 

In an interview with CNBC on April 9, van Eck stated that his firm’s spot Ethereum ETF application will “probably be rejected.”

VanEck, alongside Cathie Wood’s ARK Invest, was among the first to file for a spot Ether ETF in the United States. 

Both firms are currently awaiting a final decision, scheduled for May 23 and May 24, respectively. 

van Eck Says There Has Been a Lack of Feedback 

van Eck highlighted the regulatory process, explaining that regulators provide comments on the application, and in the case of Ethereum, there has been a notable lack of feedback.

CoinShares CEO Jean-Marie Mognetti has shared a similar pessimistic view, stating that he does not foresee any approvals occurring in the near future. 

The SEC has maintained a prolonged period of inaction on the seven pending applications for spot Ether ETFs. 

This ongoing “radio silence” between the regulator and prospective fund issuers, as noted by commentators including Senior Bloomberg ETF analyst Eric Balchunas, contributes to the decreasing likelihood of an ETF approval in May.

Van Eck’s Ether ETF application is one of seven awaiting approval, including those from Grayscale, BlackRock, and Fidelity. 

Balchunas, who previously assigned a 70% chance of approval in May, has revised his odds to 35%. 

In a post on X, he reiterated van Eck’s sentiments and highlighted the need for the SEC to provide comments and critical feedback, which has been lacking thus far.

Likewise, ETF analyst James Seyffart echoed this sentiment, emphasizing that the absence of comments or interactions from the SEC is concerning.

He questioned the reasons behind the SEC’s months-long inaction when the applications were anticipated.

“There’s no reason for the SEC to have done absolutely nothing for months when we knew this was coming.”

Nice scoop from @joelight. Def interesting but no change our odds. As we’ve said, need SEC to give comments on the filing documents (the “critical feedback” he mentions) and that still ain’t happening, even in person they offering nothing. Silence is violence. https://t.co/z76KTtdmHU

— Eric Balchunas (@EricBalchunas) April 8, 2024

Spot Bitcoin ETFs Start Week With Outflows

Spot Bitcoin (BTC) ETFs in the United States have experienced a reversal in investor sentiment, seeing net outflows since the start of the week following four consecutive days of inflows. 

The significant contributor to the shift was Grayscale’s GBTC spot ETF, which recorded a single-day net outflow surpassing $303 million on Monday and another $154 million on Tuesday. 

Aside from GBTC, other Bitcoin ETFs have seen net inflows during this period, with BlackRock’s iShares Bitcoin Trust and Bitwise Bitcoin ETF leading the way.

Meanwhile, VanEck’s spot Bitcoin ETF, traded under the ticker HODL, is currently the fifth largest among the ten recently launched funds (excluding Grayscale). 

Since its mid-January launch, it has seen an inflow of $461.7 million, according to Farside Investors data. 

Van Eck emphasized the success of Bitcoin ETFs, describing Bitcoin as a “maturing asset” and noting that there are still many investors yet to gain exposure to the cryptocurrency.

The post VanEck CEO Says SEC Unlikely to Approve Spot Ether ETFs in May appeared first on Cryptonews.