SEC-PR-2024-20 (FEB. 16, 2024) Source: https://www.sec.gov/newsroom/press-releases/2024-20 Download: SEC-PR-2024-20 ⊗ (PDF) PRESS RELEASE | 2024-20 SEC Charges Van Eck Associates for Failing to Disclose Influencer’s Role in Connection with ETF Launch. Washington D.C., Feb. 16, 2024 — The Securities and Exchange Commission today announced that registered investment adviser Van Eck Associates Corporation has agreed to pay […]
Category: ETF Launch
An ETF Launch refers to the introduction of a new Exchange-Traded Fund (ETF) into the financial market. This process typically involves several key stages: initial concept and strategy formulation by an asset management firm or sponsor, followed by regulatory approval from relevant authorities such as the Securities and Exchange Commission (SEC) in the United States. Once approved, the ETF sponsor selects an authorized participant (AP) to help create the initial basket of securities or assets that will underlie the ETF’s value. The ETF is then listed on a stock exchange, where investors can buy and sell shares throughout the trading day at market prices. Launches are often accompanied by marketing efforts to attract investor interest, highlighting the fund’s investment strategy, target market, and unique selling points compared to existing ETFs or traditional mutual funds. Successful launches can significantly expand the range of investment options available to investors, offering exposure to specific sectors, regions, or investment strategies in a transparent and liquid manner.