The U.S. Securities and Exchange Commission (SEC)'s approval of a rule change allowing Ethereum ETFs could mark a historic shift in cryptocurrency investing, according to VanEck CEO Jan van Eck.
Van Eck, who follows developments in the cryptocurrency market closely, called the SEC's move “one of the most surprising things he has seen regarding securities regulation in his career.”
VanEck became the first company to apply to the SEC for permission to list its proposed Ethereum ETF. With initial approval in place, the company can now begin the process of bringing the product to market, although the exact timeline remains unclear.
VanEck expressed concern about the risk of the SEC losing regulatory authority over digital assets. “The first reaction was that the ETF approval was given the green light,” he said, implying that there was a bigger event going on in the background.
According to Van Eck, the excitement around Ethereum this May means the emergence of clearer regulation and increased investor interest in crypto. His company claimed in a statement on its website that “the evidence clearly shows that ETH is a decentralized commodity and not a security.”
Additionally, VanEck CEO stated that the passage of the Financial Innovation and Technology Act for the 21st Century, or FIT21, by Parliament on May 8 is another important step towards regulatory clarity for cryptocurrencies. However, he remains skeptical about the bill reaching the Senate before the elections.
*This is not investment advice.