Jan Van Eck, the CEO of investment firm VanECK, suggests that the crypto industry should prioritize transaction fees over Bitcoin, Ethereum, or their ETFs. Sharing his perspective highlights the unpredictable fluctuations in fees associated with Bitcoin and Ethereum. 

The Securities and Exchange Commission (SEC) has until the end of May to finalize its decision on the spot Ethereum ETFs application after delaying its initial decision date in March. Companies such as BlackRock, Fidelity, and VanEck, which have introduced spot Bitcoin ETFs this year, are quite keen on ETH ETF approval.

However, Van Eck believes that Ethereum is likely facing rejection, stating “We were also the first to apply for Ethereum in the US, and we and Ark Invest CEO Cathy Wood back in May. We are probably the first in line to be rejected,” he added. 

Van Eck further explained that the regulatory process entails regulators providing feedback on applications, which typically happens weeks before Bitcoin ETFs are approved. At this stage, “there is total silence regarding Ethereum,” he noted. 

Nevertheless, enthusiasm towards ETH ETF has been increasing within the crypto community, particularly after the SEC’s approval of the first spot Bitcoin ETFs in January. The price of ETH has been on the rise over the past week, mainly driven by optimism that the SEC will approve the spot Ethereum ETFs. 

Meanwhile, Van Eck proceeded to highlight the importance of layer 2 blockchains and the Solana network, emphasizing that transaction costs are “available at affordable rates” through these platforms. Furthermore, he remarked, “No one would ever use” Bitcoin and Ethereum due to their high fees. He posed a question to the wider audience stating:

“My analogy for non-crypto people is, would you want to fill your car at $50, you know, week after week, and then one week at $600? And that’s effectively what high gas fees are on Ethereum.”

Lastly, Van Eck also touched upon the discussion about the ETH ETFs, mentioning that it’s improbable for such products to receive approval by May.