Charges
The SEC has fined VanEck Associates $1.7 million for failing to disclose an influencer’s involvement in the launch of its Spot Bitcoin ETF. The SEC alleges that VanEck knew about the influencer’s role and offered a licensing fee structure that incentivized the influencer’s promotion.
Omission
VanEck failed to inform the ETF board about the influencer’s involvement and the licensing fee structure. This omission prevented the board from fully assessing the economic impact of the arrangement and the advisory’s contract for funds.
Settlement
VanEck has agreed to pay the $1.7 million settlement without admitting or denying the allegations. The SEC has also issued a cease and desist order and an official censure.
ETF Performance
Despite the SEC’s action, VanEck’s ETF has attracted significant inflows and currently has $76 million in assets under management. The company predicts that over $2.4 billion will flow into the ETF in the first quarter of 2024.
