VanEck Asks SEC to Maintain Filing Order Integrity for Ethereum ETF
Crypto News- Matthew Sigel, head of crypto research at VanEck, has raised concerns over the SEC’s current methodology. Presently, the SEC allows multiple firms to launch ETFs simultaneously, irrespective of their filing dates. This approach was evident when the regulator permitted the simultaneous launch of all spot Bitcoin ETFs on January 11.
“We were the first to file, and we expect to be the first to respond to comments and to launch,” Sigel expressed in an X space. “When you filed used to matter, and it should again.” He argued that adhering to the filing order is crucial for fairness and maintaining orderly market practices.
“It creates an uneven playing field for issuers who filed earlier and had to wait longer. Those who filed months ago had to keep their applications updated and compliant for a longer period, incurring more costs and legal fees compared to later filers,” Sigel added.
Critical Juncture: SEC Review Period Conclusion
This issue is particularly pressing as the SEC’s 240-day review period for VanEck’s latest ether ETF bid concludes today, just a day before the commission is set to make a decision on similar proposals by Ark Invest and 21Shares.
Until last week, VanEck CEO Jan van Eck had anticipated a potential rejection for their spot Ethereum ETF. Despite being pioneers, both VanEck and Ark Invest seemed likely to face rejection.
Analyst and Market Sentiment Shift
However, the outlook has improved since the start of the week. Bloomberg ETF analysts Eric Balchunas and James Seyffart recently upgraded the approval chances for spot Ethereum ETFs from 25% to an optimistic 75%.
Signs of Regulatory Reconsideration
Prediction platforms like Polymarket have also shown a significant rise in approval odds, jumping from 10% to 58% last week. Furthermore, the SEC has requested revisions to the spot Ethereum ETF proposals from Nasdaq and Cboe, a move seen as a crucial step towards potential approval. This development suggests a possible shift in the regulatory stance towards Ethereum ETFs.
FAQ: VanEck’s Call for Filing Order Integrity
Why is VanEck urging the SEC to respect the filing order for ETFs?
VanEck, through its head of crypto research Matthew Sigel, believes that respecting the order in which ETF filings are made is essential for fairness and maintaining orderly market practices.
What concerns does VanEck have regarding the SEC’s approval process?
VanEck is concerned that the SEC currently allows multiple firms to launch ETFs simultaneously, regardless of when they filed. Sigel argues that this disregards the efforts of earlier filers and creates an uneven playing field.
How does disregarding the filing order impact ETF issuers?
According to Sigel, issuers who filed earlier incur additional costs and legal fees while waiting for approval. Disregarding the filing order undermines the efforts of those who filed earlier and had to maintain compliance for a longer period.
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