Ethereum (ETH) and the broader cryptocurrency markets have rallied just lately within the hope of the spot Ethereum ETF receiving approval this week. The Ethereum (ETH) worth all the way in which previous $3,800 registering greater than 30% positive aspects simply within the final two days. However, everybody’s asking what led the US SEC to hurry by way of the 19b-4 filings. There’s a chat happening that the choice to hurry by way of the spot Ethereum ETF is extra political reasonably than regulatory.
Spot Ethereum ETF on the Center of U.S. Politics
Until final week, the US SEC was not keen to interact with the issuers on the spot Ethereum ETF, nonetheless, it has instantly taken a 180-degree flip this week.
“It is a completely unprecedented situation, which means it’s entirely political. They’re not even internally coordinated yet, which is why this is most likely a political decision,” famous Sarah Wynn from The Block.
Other sources additionally said that with the U.S. Presidential elections approaching later this yr, this might be politically motivated as properly. The Biden repute by way of the years has constructed its repute for cracking down on the crypto market.
On the opposite hand, former President Donald Trump has undertaken a pro-crypto stand and is keen to simply accept donations in crypto. “The problem is that the Democrats urgently need young voters to turn out for them. Biden’s campaign strategy is focused on presenting himself as a forward-looking octogenarian,” the supply said. The supply added that President Joe Biden may acquire a bonus if the SEC approves spot Ether ETFs.
EVERYTHING HAS CHANGED.
Democrats pushed again in opposition to Biden and Warren and voted for crypto.
The FDIC chair that Warren was privately defending and who orchestrated Chokepoint 2.0 is stepping down.
The ETH ETFs are prone to be accepted now on account of the tide change.…
— The Wolf Of All Streets (@scottmelker) May 21, 2024
Expert’s Take on the Matter
Some of the crypto business specialists imagine that the SEC’s 180-degree shift this week isn’t solely politically motivated. Nate Geraci, the President of ETF Store, stated that the SEC was all the time getting ready for the approval of spot Ethereum ETF. The securities regulator accepted Ether futures ETF final October 2023, from ProfessionalShares, VanEck and Bitwise, thereby setting the stage for spot merchandise.
My principle on SEC ready till final minute to interact w/ exchanges & issuers on spot eth ETFs…
I believe politics performed a really minor function right here, if any.
through @ForTheWynn_ pic.twitter.com/IOZQOJPNBA
— Nate Geraci (@NateGeraci) May 21, 2024
“Once the SEC approved ether futures ETFs, that likely sealed the fate of an approval outcome for spot ether ETFs,” Geraci stated.
On the opposite hand, some Bitcoin maximalist have been having an actual meltdown on the SEC contemplating a spot Ethereum ETF approval. Popular Twitter deal with, The Bitcoin Therapist famous:
If the SEC approves an Ethereum ETF it will likely be a sign the market just isn’t regulated by competent actors. Ethereum is actually a speculative platform for playing on centralized shitcoins. This will pave the way in which for a shitcoin on line casino embedded into the SEC.
Paul Grewal, Chief Legal Officer at Coinbase, asserts that the present invoice challenges the SEC’s latest assertion that each one cryptocurrencies, besides Bitcoin, meet the Howey Test standards for securities.
Grewal emphasised that this invoice doesn’t dismantle the business however reasonably addresses what he considers a flawed regulatory perspective.
Note that there’s no clear timeline for the approval of spot Ether ETFs. However, the present developments recommend that they might be arriving by late July of early August.
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