VanEck will pay a fine of $1.75 million to the SEC for violations in ETF marketing

ChainCatcher news, according to Cointelegraph, asset management group VanEck will pay a $1.75 million fine to settle charges from the U.S. Securities and Exchange Commission (SEC) related to its socially-focused ETF launched in 2021.

The SEC imposed a civil penalty on the company. In a statement on February 16, the SEC revealed that when VanEck launched the Social Sentiment ETF in March 2021, it did not fully disclose the involvement of a well-known social media figure in promoting the product.

The ETF aimed to track an index through "positive insights" from social media and other data sources. However, the SEC found that to enhance the fund's appeal through social media, VanEck collaborated with an influential online personality to boost the fund's success rate.