As part of its settlement with the US Securities and Exchange Commission (SEC), asset manager VanEck has agreed to pay a $1.75 million fine related to the launch of its social media-focused ETF back in 2021.
According to the regulator, during the launch, VanEck did not fully disclose the involvement of a prominent social media personality in promoting the fund.
The ETF aimed to track a social media-based index, but the SEC discovered VanEck had engaged in undisclosed marketing strategies, including collaborating with an influential online personality to boost the fund's success.
Although the SEC did not explicitly name the influencer, reports have previously connected Barstool Sports founder David Portnoy to the promotion of the VanEck ETF.
The regulator also found that the influencer's compensation was tied to the fund's growth.