Regulation
VanEck CEO hails the approval of the Ethereum ETF as a historic shift in the cryptocurrency industry
Approved by the US Securities and Exchange Commission (SEC). Spot ETF on Ethereum marks a pivotal moment in the cryptocurrency market. VanEck CEO Jan van Eck described this regulatory change as one of the most significant events of his career. The SEC’s move is expected to bring greater clarity and investor interest in cryptocurrencies.
VanEck CEO Celebrates SEC Ethereum ETF Approval
VanEck was the first to request permission from the SEC to list an ETF on Ethereum. With the approval granted, VanEck is now ready to bring this product to market. While the timing for its launch remains uncertain, this regulatory milestone represents a major shift in the cryptocurrency landscape.
“This is really one of the most surprising things I’ve seen in my career as far as securities regulation goes,” van Eck told CNBC’s “ETF Edge” this week.
He underlined the importance of the SEC’s decision, highlighting the risk of the SEC losing jurisdiction over digital assets. THE Ethereum ETF approvalThis reflects a broader trend towards clearer regulation and greater investor confidence in cryptocurrencies.
The approval has sparked significant interest in Ethereum. Van Eck believes this development points to a broader narrative of growing cryptocurrency acceptance and regulatory clarity. In a statement, VanEck highlighted this
“the evidence clearly shows that ETH is a decentralized commodity, not a security.”
Matt Hougan, Chief Investment Officer at Bitwise, echoed this sentiment, predicting substantial investor inflows into these ETFs.
He predicted that these inflows would increase Ethereumabove its previous peak of around $4,900 in November 2021. While Hougan acknowledged that Ethereum ETFs may not match Bitcoin ETFs in terms of inflows, he still expects significant demand. Bitcoin ETFs saw inflows of $12 billion in the first four months; Hougan expects Ethereum ETFs to reach less than half that figure, but more than a quarter.
The FIT21 law strengthens the regulatory framework on cryptocurrencies
The passage of the Financial Innovation and Technology for the 21st Century Act (FIT21) in the House on May 8 further supports the regulatory framework for cryptocurrencies. Van Eck noted that while the bill may not reach the Senate before the next election, it represents a significant step toward regulatory clarity.
Its legislative progress, along with the SEC’s approval of Ethereum ETFs, suggests a more stable and predictable environment for digital assets. Ether spiked on May 23, when the SEC approved listing applications for Ethereum ETFs, although its value has remained relatively stable since then. This fluctuation highlights the market’s anticipation of further regulatory and legislative developments.
Read also: The Spot Bitcoin ETF is up 54% year to date to outpace rivals TradFi