The recent development where the U.S. Securities and Exchange Commission announced its approval to list Ether-referenced exchange-traded funds could be an important turning point in the digital asset investment space. Jan van Eck of VanEck, the chief executive, may regard this as a dramatic shift in the market trends.
“It is one of the most impressive things I have seen in my career in securities regulation,” van Eck said in a segment of CNBC’s ‘ETF Edge’ this week.
VanEck was actually the first company to even file for approval from the SEC to launch an Ethereum ETF. Thus, the burden has been shifted, and VanEck can begin to go through the process of launching the product on the market; however, the time frame is still unknown.
“It may have been a real possibility that the SEC may get off the digital assets oversight train,” said van Eck. “But, let’s see how things are in this world. ”
These signs of more clear regulations ahead and a growing interest from investors in the crypto space again from van Eck who notes Ethereum was the focus of much excitement in May. This point is aptly captured in VanEck’s website where they assert, “The evidence strongly supports that ETH is a decentralized commodity and not a security. ”
Van Eck also noted that the House passed the Financial Innovation and Technology for the 21st Century Act (FIT21) on May 8, which is a significant step towards attaining more understandable legislation for cryptocurrencies. But he said he doubts it will get through the Senate before the election.
It surged in the week following the approval of the Ethereum ETF applications by the SEC on May 23 but has been stable since then.
In conclusion, the approval of ETFs that are linked to Ethereum gives the signal to investors that the new age of investing in digital currencies has dawned. This lays the foundation for improved legal frameworks and steepened investor engagement, which can significantly redefine the climate of digital asset investment.
