Recently, the spot Ethereum ETF (ETH) and the larger cryptocurrency markets have surged in anticipation of this week’s approval. In just the previous two days, the price of Ethereum (ETH) has increased by more than 30%, reaching levels around $3,800. But why did the US SEC move so quickly through the 19b-4 filings? Everyone wants to know. There is a discussion about how the decision to approve the Ethereum ETF on the spot is more political than regulatory.
Ethereum ETF: The Pulse of American Politics
The US SEC was unwilling to communicate with the issuers of the spot Ethereum ETF until last week, but this week, it has abruptly changed its mind.
It’s all political because it’s an unusual circumstance. According to Sarah Wynn of The Block, this is probably a political move because they still need to be internally coordinated.
Other reports said this may have political motivations because the US presidential elections are coming up later this year. Over time, Biden’s image has grown because of his propensity for taking tough measures against the cryptocurrency sector.
However, former US President Donald Trump has taken a pro-crypto stance and is open to receiving donations in cryptocurrency. The issue is that young voters are crucial to the Democratic Party’s chances of winning. The source said Biden’s campaign approach is centered on projecting an image of a forward-thinking octogenarian. The source said President Joe Biden would benefit if the SEC permits spot Ether ETFs.
EVERYTHING HAS CHANGED.
Democrats pushed back against Biden and Warren and voted for crypto.
The FDIC chair that Warren was privately protecting and who orchestrated Chokepoint 2.0 is stepping down.
The ETH ETFs are likely to be approved now as a result of the tide change.…
— The Wolf Of All Streets (@scottmelker) May 21, 2024
Expert Opinion on the Subject
Experts in cryptocurrency disagree that the SEC’s radical change this week was only driven by political considerations. The president of ETF Store, Nate Geraci, stated that the SEC was constantly getting ready to approve spot Ethereum ETFs. In October 2023, ProShares, VanEck, and Bitwise received approval from the securities authority for their Ether futures ETF, which paved the way for spot products.
My theory on SEC waiting until last minute to engage w/ exchanges & issuers on spot eth ETFs…
I think politics played a very minor role here, if any.
via @ForTheWynn_ pic.twitter.com/IOZQOJPNBA
— Nate Geraci (@NateGeraci) May 21, 2024
According to Geraci, “the SEC’s approval of ether futures ETFs pretty much sealed the deal for spot ether ETF approval.”
However, some Bitcoin maximalists have been going wild about the SEC’s consideration of approving an Ethereum ETF on the spot. The Bitcoin Therapist, a well-known Twitter account, mentioned:
If the SEC approves an Ethereum ETF it will be an indication the market is not regulated by competent actors. Ethereum is literally a speculative platform for gambling on centralized shitcoins. This will pave the way for a shitcoin casino embedded into the SEC.
According to Coinbase Chief Legal Officer Paul Grewal, the latest measure challenges the SEC’s recent claim that other cryptocurrencies—aside from Bitcoin—meet the requirements for securities under the Howey Test.
Grewal clarified that this bill addresses what he sees as an incorrect regulatory viewpoint rather than completely deconstructing the sector.
Be aware that the approval process for spot Ether ETFs lacks a defined deadline. They might arrive by late July or early August.
