The U.S. Securities and Exchange Commission (SEC) ‘s approval of spot Ethereum ETFs marks a pivotal moment in the cryptocurrency market. VanEck CEO Jan van Eck described this regulatory change as one of the most significant events in 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 apply to the SEC for permission to list an Ethereum ETF. With the approval granted, VanEck is now poised to bring this product to market. Although the timeline for its launch remains uncertain, this regulatory milestone signifies a major shift in the crypto landscape.
“This is really one of the most amazing things that I’ve seen in my career with respect to securities regulation,” van Eck told CNBC’s “ETF Edge” this week.
He emphasized the importance of the SEC’s decision, noting the risk of the SEC losing jurisdiction over digital assets. The approval of Ethereum ETFs reflects a broader trend towards clearer regulation and increased investor confidence in crypto.
The approval has sparked significant interest in Ethereum. Van Eck believes this development indicates a broader narrative of growing cryptocurrency acceptance and regulatory clarity. In a statement, VanEck highlighted that
“the evidence clearly shows that ETH is a decentralized commodity, not a security.”
Matt Hougan, Chief Investment Officer of Bitwise, echoed this sentiment, expecting substantial investor inflows into these ETFs.
He predicted that these inflows would drive Ethereum‘s value beyond its previous peak of about $4,900 in November 2021. Although Hougan acknowledged that Ethereum ETFs might not match Bitcoin ETFs in inflows, he still anticipates significant demand. Bitcoin ETFs saw $12 billion in inflows within the first four months; Hougan expects Ethereum ETFs to achieve less than half of that but more than a quarter.
FIT21 Act Boosts Crypto Regulatory Framework
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 act might not reach the Senate before the upcoming election, it represents a significant step toward regulatory clarity.
His legislative progress, coupled 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 applications to list Ethereum ETFs, though its value has remained relatively flat since then. This fluctuation underscores the market’s anticipation of further regulatory and legislative developments.
Also Read: Spot Bitcoin ETF Up 54% YTD To Outrank Rival TradFi Peers
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