Jan Van Eck, the chief executive officer (CEO) of the Vaneck asset management firm, says that he expects the U.S. Securities and Exchange Commission (SEC) to reject spot %Ethereum (CRYPTO: $ETH) exchange-traded funds (ETFs).
The SEC has several Ethereum ETF applications before it, including on from Vaneck, and there was speculation that the Wall Street regulator would approve them after it approved similar spot %Bitcoin (CRYPTO: $BTC) ETFs in January of this year.
The SEC faces a May deadline to decide on the approval of spot Ethereum ETFs, including applications from Ark Invest and %BlackRock (NYSE: $BLK).
However, Jan Van Eck says he is doubtful the Ethereum ETFs will be approved this spring given the current market environment.
“Pins are dropping as far as Ethereum is concerned,” Van Eck said in an interview with CNBC television.
A downturn in equities, rising U.S. inflation, and a pushback in the timing of interest rate cuts are all likely to keep the SEC on the sidelines in terms of Ethereum ETF approvals, added Van Eck.
Last week, analysts at %JPMorganChase (NYSE: $JPM) said in a note to clients that they expect the SEC to reject the Ethereum ETF applications it has before it.
JPMorgan said that the SEC is unlikely to approve Ethereum ETFs until it faces litigation from the investment firms and loses in court, similar to what happened with the Bitcoin ETFs.
Ethereum’s price has risen 51% so far this year to currently trade at $3,561.26 U.S. per token.
