Major cryptocurrency shift due to SEC Ethereum ETF ruling: VanEck CEO

What’s next for Spot Ethereum?

VanEck CEO Jan van Eck expects a major shift in sentiment in the cryptocurrency market in connection with the approval of a rule change by the US Securities and Exchange Commission (SEC) that allows Ethereum exchange-traded funds.

“This is really one of the most amazing things I've seen in my career in terms of securities regulation,” van Eck told CNBC's “ETF Edge” this week.

VanEck was the first company to file for approval with the SEC to list its proposed Ethereum ETF. Once this first hurdle is cleared, VanEck can begin rolling out the product, although the exact timeline is still unclear.

“There was a real risk that the SEC would lose all jurisdiction over digital assets. So the first reaction was to get the green light for ETF approval, for the Ethereum ETF,” he said. “But I think there's a larger discussion as well.”

For van Eck, the hype surrounding Ethereum in May means that clearer regulation is on the way and investor interest in cryptocurrencies is increasing. In a statement on his company's website, he said: “The evidence clearly shows that ETH is a decentralized commodity, not a security.”

Van Eck said the passage of the Financial Innovation and Technology for the 21st Century Act (FIT21) in the House of Representatives on May 8 was another important step toward clearer cryptocurrency regulations, but he doubts the bill will be considered in the Senate before the election.

ether jumped when the SEC approved Ethereum ETF listing applications on May 23, but has remained virtually unchanged since then.