The CEO of financial giant VanEck has reportedly stated that the U.S. Securities and Exchange Commission (SEC) is likely to reject proposals for Ethereum (ETH) exchange-traded funds (ETFs).
While many financial institutions had their proposals for Bitcoin (BTC) ETFs approved earlier this year, VanEck CEO Jan van Eck told CNBC in an interview that he believes the regulatory agency will not approve ETH ETFs.
“We were the first to file for Ethereum in the U.S., and we and Cathy Wood, CEO of Ark Invest, are likely the first in line to be rejected in May…
The regulatory process involves the regulators providing comments on your application, and that happened for weeks and weeks before the Bitcoin ETFs were approved. Right now, it seems that Ethereum is facing similar scrutiny.”
The SEC approved BTC ETFs in January after years of rejecting them, following a court order to reconsider the applications. ETFs allow traders to gain exposure to an asset without actually purchasing it.
In March, the regulatory agency announced that it needed more time to consider the possibility of an ETF based on Ethereum and would be delaying its decision by 60 days until May.
However, some crypto firms, such as top US-based crypto exchange Coinbase and blockchain software provider Consensys, are urging the SEC to approve ETH ETFs. They argue that Ethereum’s cybersecurity and resilience to fraud are even stronger than Bitcoin’s.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook, and Telegram
Surf The Daily Hodl Mix
Disclaimer: The opinions expressed at The Daily Hodl are not investment advice. Investors should conduct their own research before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. Please be aware that your transfers and trades are done at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney