VanEck Fined $1.75M by SEC for Undisclosed Influencer Payment

The fine was levied for failing to disclose payments to Dave Portnoy for promoting a social media buzz ETF, highlighting the need for transparency.

VanEck has been fined $1.75 million by the SEC for failing to disclose payment to Dave Portnoy for promoting its Social Sentiment ETF.
The undisclosed payment was part of a promotional campaign for the ETF, which tracks stocks with positive buzz on social media.
Despite the fine, VanEck continues to operate a variety of specialized ETFs, including a spot bitcoin ETF launched in January.
The SEC's action underscores the importance of transparency in promotional activities for financial products.
Dave Portnoy, known for his controversial persona, was involved in the ETF's promotion but expressed regret over not investing more in Bitcoin.