VanEck CEO Jan van Eck expressed doubt over the approval of spot Ether exchange-traded funds (ETFs) by the SEC in May in a recent interview with CNBC. He mentioned that his firm’s spot Ethereum ETF application will likely be rejected, citing the lack of feedback from regulators on the application. Other industry experts, including CoinShares CEO Jean-Marie Mognetti, share a pessimistic view and do not foresee any approvals in the near future. The SEC has maintained a period of inaction on the seven pending applications for spot Ether ETFs, leading to a decreasing likelihood of approval in May according to Senior Bloomberg ETF analyst Eric Balchunas.
Van Eck’s Ether ETF application is one of seven awaiting approval, with other well-known firms such as Grayscale, BlackRock, and Fidelity also in the running. Balchunas, who previously assigned a 70% chance of approval in May, has revised his odds to 35% due to the ongoing radio silence from the SEC. He stressed the need for the regulator to provide critical feedback and comments on the applications, which has been lacking thus far. Another ETF analyst, James Seyffart, echoed these sentiments, questioning the SEC’s months-long inaction when the applications were widely anticipated.
In a separate development, spot Bitcoin ETFs in the United States have experienced a reversal in investor sentiment, with net outflows since the start of the week following four consecutive days of inflows. Grayscale’s GBTC spot ETF recorded a significant single-day net outflow of more than $303 million on Monday and an additional $154 million on Tuesday. However, other Bitcoin ETFs such as BlackRock’s iShares Bitcoin Trust and Bitwise Bitcoin ETF have seen net inflows during this period. VanEck’s spot Bitcoin ETF, traded under the ticker HODL, is currently the fifth largest among the ten recently launched funds (excluding Grayscale), with an inflow of $461.7 million since its mid-January launch, 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 seeking exposure to the cryptocurrency. Despite the challenges and uncertainties surrounding the approval of spot Ether ETFs by the SEC, the popularity and growth of Bitcoin ETFs show a strong interest from investors in gaining exposure to digital assets through regulated financial products. The evolving landscape of ETFs in the cryptocurrency space highlights the need for regulatory clarity and engagement to promote investor confidence in the market. The ongoing developments in the ETF industry and regulatory environment will likely shape the future of digital asset investment opportunities for institutional and retail investors alike.
