Experts discuss SEC's changed stance on Ethereum spot ETFs
Experts discuss SEC's changed stance on Ethereum spot ETFs
In light of the expected approval of the Ethereum spot ETF this week, the price of ETH and other cryptocurrencies has surged. The price of Ethereum (ETH) surpassed the $3,800 mark, posting gains of more than 30% between May 20 and May 22.
At the same time, many market participants are wondering why the US Securities and Exchange Commission (SEC), which strongly opposed the Ethereum spot ETF as recently as last week, is now rushing issuers to file Form 19b-4 registration documents with it.
Some analysts believe the decision to expedite the Ethereum ETF issuance process is more political than regulatory, given the upcoming US presidential election and the SEC's dramatic change of heart, CoinGape reported.
The SEC's approval of Ethereum spot ETFs under Joe Biden will help rally the younger generation, which favors the adoption and proliferation of cryptocurrency, to his side, which will significantly boost his chances for the presidency in 2024.
On the other hand, former President Donald Trump has also launched a campaign in support of cryptocurrencies and has expressed his willingness to accept donations in digital assets, DB noted.
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Still, a number of cryptocurrency industry experts believe that the SEC's abrupt change of heart this week is not necessarily due to politics but to a clear chain of consistent actions by the regulator.
Nate Geraci, president of ETF Store, said that the SEC has always been willing to approve an Ethereum spot ETF, as evidenced by the approval of the October 2023 ETH futures ETF.
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It's worth noting that while there is no clear timeline for the approval of the spot ETF, current developments indicate that it could be approved in late July or early August.
At the time of writing, ETH is trading at $3,765, up 3.28% in the past 24 hours. Ethereum has gained 29.6% in seven days. Its market capitalization is $452.26 billion.
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