The Shift in Crypto Investing: Ethereum ETFs Get the Green Light

The SEC's approval of Ethereum ETFs marks a significant shift in crypto investing, with clearer regulation on the horizon and increased investor interest in crypto.

The Shift in Crypto Investing: Ethereum ETFs Get the Green Light

The U.S. Securities and Exchange Commission’s (SEC) recent ruling on Ethereum exchange-traded funds (ETFs) could mark a historic shift in crypto investing. VanEck CEO Jan van Eck sees a major sentiment shift underway in the cryptocurrency market linked to the SEC’s approval of a rule change allowing for Ethereum ETFs.

The cryptocurrency market is experiencing a major shift in sentiment.

“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.

VanEck was the first to apply to the SEC for permission to list its proposed Ethereum ETF. With that first hurdle cleared, VanEck can begin the process of bringing the product to market, though the exact timeline is unclear.

“There was a real risk that the SEC was going to lose any kind of jurisdiction over digital assets. So the first reaction was to get the ETF, Ethereum ETF approval green lighted,” he said. “But I think there’s a bigger narrative going on as well.”

The Ethereum ETF is a major step towards regulatory clarity for cryptocurrencies.

To van Eck, the buzz around Ethereum this May means clearer regulation on the horizon and an increased investor interest in crypto. In a statement on its website, his company said that “the evidence clearly shows that ETH is a decentralized commodity, not a security.”

“The Financial Innovation and Technology for the 21st Century Act, or FIT21, passing in the House on May 8 was another major step toward regulatory clarity for cryptocurrencies,” van Eck said, although he is doubtful it will make it to the Senate before the election.

Ether spiked on the SEC’s approval of applications to list Ethereum ETFs on May 23, but is virtually flat since then.

The price of Ether has been relatively flat since the SEC’s approval.

The implications of this ruling are far-reaching, and it will be interesting to see how the cryptocurrency market responds in the coming weeks and months.