VanEck’s CEO, Jan van Eck, cast doubt on the approval of spot Ether ETFs by the U.S. Securities and Exchange Commission (SEC) in May. In an interview with CNBC, van Eck said his firm’s application for a spot in Ethereum ETF will “probably be rejected.”

Source: CNBC

VanEck was among the first to file for a spot in Ether ETF in the United States, alongside Ark Invest. Both firms are awaiting a final decision from the SEC, with deadlines in May (VanEck on May 23rd and Ark on May 24th).

The lack of communication from the SEC regarding the applications is seen as a negative sign by Van Eck. He noted that during the approval process for Bitcoin ETFs, regulators provided comments on the applications weeks in advance. This silence suggests a potential rejection of Ether ETFs.

This news comes amidst a period of heightened scrutiny for cryptocurrency ETFs. The SEC has yet to approve a spot Bitcoin ETF, citing concerns about market manipulation and potential investor protection issues. It seems likely these same concerns will apply to Ether ETFs as well.

The rejection of Ether ETFs in May would be a blow to investors hoping for an easier way to gain exposure to Ethereum. However, it wouldn’t necessarily signal the end of the road for Ether ETFs. The SEC could still approve them at a later date, or ETF issuers could revise their applications to address the SEC’s concerns.