Asset management group VanEck will pay a $1.75 million fine to resolve U.S. Securities and Exchange Commission (SEC) charges related to its 2021 launch of a social media-focused ETF.
The SEC imposed civil penalties on the company. The SEC revealed in a statement on February 16 that when VanEck launched the Social Sentiment ETF in March 2021, it did not fully disclose the involvement of a prominent social media figure in promoting the product.
The ETF aims to track the index through "positive insights" from social media and other data sources. However, the SEC found that in an effort to increase the fund's success through social media, VanEck collaborated with an influential online personality to enhance the fund's appeal. (Cointelegraph)