{"id":26386,"date":"2024-02-17T23:56:55","date_gmt":"2024-02-17T23:56:55","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/sec-penalizes-van-eck-over-influencer-marketing-missteps\/"},"modified":"2024-02-17T23:56:55","modified_gmt":"2024-02-17T23:56:55","slug":"sec-penalizes-van-eck-over-influencer-marketing-missteps","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/sec-penalizes-van-eck-over-influencer-marketing-missteps\/","title":{"rendered":"SEC Penalizes Van Eck Over Influencer Marketing Missteps"},"content":{"rendered":"

(Originally posted on : Crypto News – iGaming.org )<\/b>
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Van Eck Associates Corporation has faced a $1.75 million fine from the U.S. Securities and Exchange Commission (SEC) over its failure to disclose a social media influencer\u2019s role in marketing a new exchange-traded fund (ETF). During the launch of the VanEck Social Sentiment ETF in 2021, the company did not fully reveal the participation of a prominent online figure in its promotional efforts. This ETF aimed to capitalize on \u201cpositive insights\u201d from social media and other data sources to guide its investments.<\/p>\n

The SEC\u2019s investigation highlighted that Van Eck engaged with a significant yet contentious internet figure to enhance the fund\u2019s appeal, offering a compensation plan that grew with the fund\u2019s size. This arrangement, especially the influencer\u2019s compensation tied to the fund\u2019s success, was not disclosed to the ETF\u2019s board, a move criticized by the SEC for undermining the board\u2019s oversight responsibilities.<\/p>\n

Reports from 2021 suggest David Portnoy<\/a>, Barstool Sports\u2019 founder, was the influencer involved, although the SEC\u2019s announcement did not name him directly. The lack of transparency around this marketing strategy and the influencer\u2019s involvement brought the company under the regulator\u2019s scrutiny, with implications for the ETF\u2019s management and operational strategies.<\/p>\n

Andrew Dean, co-chief of the SEC Enforcement Division\u2019s Asset Management Unit, stressed the importance of transparency from advisers, noting:<\/p>\n

\u201cVan Eck Associates\u2019 disclosure failures concerning this high-profile fund launch limited the board\u2019s ability to consider the economic impact of the licensing arrangement and the involvement of a prominent social media influencer as it evaluated Van Eck Associates\u2019 advisory contract for the fund.\u201d<\/em><\/p>\n

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Van Eck has accepted the SEC\u2019s findings without admitting or denying the allegations, agreeing to a cease-and-desist order and censure in addition to paying the civil penalty. This settlement follows closely on the heels of Van Eck\u2019s decision to close down its Bitcoin Strategy ETF after a thorough performance review.<\/p>\n<\/p><\/div>\n

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(Originally posted on : Crypto News – iGaming.org ) Van Eck Associates Corporation has faced a $1.75 million fine from the U.S. Securities and Exchange Commission (SEC) over its failure to disclose a social media influencer\u2019s role in marketing a new exchange-traded fund (ETF). During the launch of the VanEck Social Sentiment ETF in 2021, […]<\/p>\n","protected":false},"author":34,"featured_media":26387,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[34],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/26386"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/34"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=26386"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/26386\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/26387"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=26386"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=26386"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=26386"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}