Million

Fine

Influencer

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/vaneck-hit-with-1-75-million-fine-for-concealed-influencer-marketing-tactics" rel="noopener noreferrer nofollow">VanEck Hit with $1.75 Million Fine for Concealed Influencer Marketing Tactics</a><br></p>
<p style="text-align: justify">VanEck’s ETF initiative, which aimed to profit from social media sentiment, has resulted in a significant penalty. The investment firm must pay $1.75 million due to charges by the U.S. Securities and Exchange Commission (SEC) for not fully disclosing an influencer’s role in the ETF’s marketing strategy. The ETF, launched in March 2021, was designed to track an index reflecting positive social media feedback but faced scrutiny for its marketing practices.</p>
<h2 id="sec-cites-lack-of-transparency">SEC Cites Lack of Transparency</h2>
<p style="text-align: justify">The SEC’s investigation revealed that VanEck engaged an influential online figure to promote the fund, potentially swaying public perception. Although the financial influencer wasn’t officially named, speculation linked David Portnoy of Barstool Sports to the campaign. A controversial detail emerged: the influencer’s compensation was directly correlated with the fund’s performance, leading to a potential conflict of interest.</p>
<p style="text-align: justify">The undisclosed arrangement drew criticism from the SEC for keeping the ETF’s board in the dark about the influencer deal, which affected the fund’s management and operations. This lapse in governance breached the board’s supervisory responsibilities during advisory contract negotiations.</p>
<h2 id="comments-from-sec-enforcement-division">Comments from SEC Enforcement Division</h2>
<p style="text-align: justify">Andrew Dean from the SEC’s Enforcement Division underscored the necessity for investment advisors to maintain complete transparency. He stressed that the absence of proper disclosures hindered the board’s ability to evaluate advisory contracts and comprehend the financial implications of engaged agreements.</p>
<p style="text-align: justify">VanEck’s settlement involved acknowledging the contravention of specific acts without admitting to the SEC’s findings, accepting a cease-and-desist order, censure, and the financial penalty. This resolution comes as VanEck winds down its <a href="https://en.bitcoinhaber.net/bitcoin-set-to-soar-in-analysts-bold-prediction" rel="noopener noreferrer nofollow">Bitcoin</a> Strategy ETF and lowers fees for its HODL Bitcoin ETF to attract more investors.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/vaneck-hit-with-1-75-million-fine-for-concealed-influencer-marketing-tactics" rel="noopener noreferrer nofollow">VanEck Hit with $1.75 Million Fine for Concealed Influencer Marketing Tactics</a></h5>

VanEck Hit with $1.75 Million Fine for Concealed Influencer Marketing Tactics

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