Financial giant VanEck's chief executive reportedly says the US Securities and Exchange Commission (SEC) is likely to reject offers to launch Ethereum (ETH) exchange-traded funds (ETFs).
Although many financial institutions' Bitcoin (BTC) ETF offerings were approved earlier this year, Jan van Eck, CEO of VanEck, said in an interview with CNBC that he does not believe the regulator will give the green light to ETH ETFs.
“We were the first to submit an Ethereum application in the US as well, and we and [Ark Invest CEO] I guess Cathy Wood is sort of the first one up in May and probably rejected…
The way the legal process works is regulators give you comments on your application, and that happened weeks before Bitcoin ETFs – and right now the pins are falling when it comes to Ethereum.”
The SEC approved BTC ETFs in January after rejecting them for years following a court order to reconsider the applications. ETFs allow traders to access an asset without actually having to purchase it.
In March, the regulator announced that it needed more time to examine the possibility of an Ethereum-based ETF and that it would delay its decision by 60 days until May.
However, some crypto firms – such as leading US crypto exchange Coinbase and blockchain software provider Consensys – are calling on the SEC to approve ETH ETFs, saying Ethereum's cybersecurity and resistance to fraud are even greater than Bitcoin's.
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