VanEck CEO: Jan van Eck expressed his doubts to CoinDesk TV’s Jen Sanasie, suggesting that the lack of response from the SEC indicates that Ethereum exchange-traded funds (ETFs) are unlikely to meet the May deadline.
The CEO of VanEck, a global investment firm known for its Bitcoin Trust (HODL) among other spot bitcoin ETFs, believes that the focus within the cryptocurrency industry should shift towards transaction fees rather than solely on Bitcoin (BTC) and Ethereum (ETH) or their associated ETFs.
Van Eck emphasized on CoinDesk’s “Markets Daily” that transaction fees on Bitcoin and Ethereum blockchains are unpredictable, posing challenges for application development within these ecosystems. He pointed out, “The most significant development of 2023, which many are aware of but perhaps not giving enough attention, is that transaction costs are now more manageable through platforms like Solana or layer 2 solutions.”
Explaining further, he likened the situation to a non-crypto analogy, stating, “Imagine filling your car with gas and paying $50 one week, then suddenly $600 the next. That’s effectively what high gas fees are like on Ethereum.”
Solana (SOL), often regarded as a competitor to Ethereum, offers a layer 1 protocol with lower costs and faster transaction speeds. Layer 2 solutions, such as Ethereum rollups and the Lightning network for Bitcoin, are additional blockchains built atop layer 1 chains to alleviate scalability issues and reduce transaction costs.
With these newer solutions providing lower and more predictable transaction fees, developers now have the opportunity to create more practical applications. Van Eck believes this trend will gain momentum in the coming years, stating, “The most intriguing aspect of crypto for me currently is the availability of scalable databases with predictable costs, enabling the development of substantial applications. We’ll witness significant advancements in this area in the near future.”
Regarding the approval of Ethereum ETFs by the May deadline, Van Eck expressed skepticism, citing the SEC’s lack of responsiveness to filings by prospective issuers. “We’ve submitted our S1 but haven’t received any feedback. This indicates that approval is unlikely without proper disclosure documentation,” he remarked.
