VanEck CEO Jan VanEck sees a major shift in sentiment in the cryptocurrency market related to the U.S. Securities and Exchange Commission approving rule changes to allow Ethereum exchange-traded funds.
“This is one of the most amazing things I’ve seen in my career in securities regulation,” Van Eck told CNBC’s “ETF Edge” this week.
VanEck is the first company to apply to the SEC for permission to list its proposed Ethereum ETF. Clearing this initial hurdle would allow VanEck to begin the process of bringing the product to market, although the exact timeline is unclear.
“There was a real risk that the SEC would lose any jurisdiction over digital assets, so the first response was to get an ETF approved, an Ethereum ETF,” he said. “But I think there’s a bigger story unfolding, too.”
For Van Eck, the buzz around Ethereum this May signifies clearer regulation on the way and growing investor interest in cryptocurrencies. In a statement on the company’s website, the firm said: “The evidence clearly shows that ETH is a decentralized product, not a security.”
Van Eck said: 21st Century Financial Innovation and Technology ActThe House of Representatives’ passage of Bill 2021, commonly known as FIT21, on May 8 is another big step toward clarifying cryptocurrency regulations, but he doubts it will make it to the Senate before the election.
Ethereum surged after the SEC approved an Ethereum ETF listing application on May 23, but has since remained largely flat.
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