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VanEck CEO Says SEC Unlikely to Approve Spot Ether ETFs in May

Jan van Eck, the CEO of VanEck, has cast uncertainty on the likelihood of spot Ether exchange-traded funds (ETFs) receiving approval from the United States Securities and Exchange Commission in May.

During an interview with CNBC on April 9, van Eck expressed skepticism, suggesting that his firm’s application for a spot Ethereum ETF will likely face rejection.

VanEck, along with Cathie Wood’s ARK Invest, were among the pioneers in filing for a spot Ether ETF in the United States.

Currently, both firms are awaiting a final decision, scheduled for May 23 and May 24, respectively.

van Eck Says There Has Been a Lack of Feedback

van Eck underscored the regulatory process, noting that regulators typically provide feedback on applications. However, concerning Ethereum, there’s been a notable absence of such feedback.

CoinShares CEO Jean-Marie Mognetti echoed this pessimistic sentiment, expressing doubt about any imminent approvals.

The SEC has remained inactive for an extended period regarding the seven pending applications for spot Ether ETFs.

This prolonged “radio silence” between the regulator and potential fund issuers, as highlighted by commentators such as Senior Bloomberg ETF analyst Eric Balchunas, further diminishes the chances of an ETF approval in May.

Among the seven awaiting approval is van Eck’s Ether ETF application, alongside those from Grayscale, BlackRock, and Fidelity.

Balchunas, who initially assessed a 70% likelihood of approval in May, has now revised his estimate down to 35%.

In a post on X, he echoed van Eck’s concerns and emphasized the importance of the SEC providing comments and constructive feedback, which has been notably lacking.

Similarly, ETF analyst James Seyffart echoed this sentiment, stressing that the absence of feedback or engagement from the SEC is worrisome.

He raised questions about the SEC’s prolonged period of inaction despite the anticipated arrival of the applications.

“There’s no justification for the SEC to have remained completely inactive for months when we were expecting this.”

Spot Bitcoin ETFs Start Week With Outflows

Spot Bitcoin (BTC) ETFs in the United States have undergone a shift in investor sentiment, witnessing net outflows since the beginning of the week after experiencing four consecutive days of inflows.

A significant factor in this reversal was Grayscale’s GBTC spot ETF, which recorded a single-day net outflow exceeding $303 million on Monday, followed by an additional $154 million on Tuesday.

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

In the meantime, VanEck’s spot Bitcoin ETF, traded under the ticker HODL, currently ranks as the fifth largest among the ten recently launched funds (excluding Grayscale). Since its launch in mid-January, it has attracted an inflow of $461.7 million, according to data from Farside Investors.

Van Eck highlighted the success of Bitcoin ETFs, characterizing Bitcoin as a “maturing asset” and pointing out that there are still many investors who have yet to gain exposure to the cryptocurrency.

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