Summary
VanEck was fined $1.75 million by the SEC for failing to disclose a social media influencer’s involvement in their ETF. The influencer was identified as Dave Portnoy. VanEck did not admit or deny the findings but agreed to a cease-and-desist order and penalty. The SEC emphasized the importance of accurate disclosures for fund boards. Despite the setback, VanEck amended its application for a spot Ethereum ETF. Other applicants have included staking plans in their filings, but VanEck’s does not. The SEC will decide on spot ETH ETF applications by May.
Key Points
1. The SEC imposed a $1.75 million fine on VanEck for disclosure failures related to a prominent social media influencer’s involvement in the Social Sentiment ETF (BUZZ).
2. VanEck did not admit or deny the SEC’s findings but agreed to a cease-and-desist order, censure, and monetary penalty.
3. Despite the setback, VanEck amended its application for a spot Ethereum ETF, which features a cash creation and redemption mechanism, reflecting industry anticipation for potential approval of an Ethereum fund.