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Qadir AK
Qadir AK
Author
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
- May 13, 2024 09:25 UTC
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Here’s How the U.S. Elections Could Affect Spot Ethereum ETF Approvals
Spot Ethereum ETF approval in the US is uncertain due to SEC investigations and lack of clarity around Ethereum regulations.
Analyst expects a delay beyond the May 23rd deadline and sees a different approach from issuers compared to Grayscale's lawsuit for Bitcoin ETFs.
US election outcome could influence SEC leadership and future crypto regulations.
Eric Balchunas, a senior analyst at Bloomberg known for his expertise in exchange-traded funds (ETFs), dives into the uncertainties surrounding the fate of spot ethereum exchange-traded funds (ETFs) in the United States.
While spot bitcoin ETFs have received the go-ahead from the Securities and Exchange Commission (SEC), Ethereum faces a maze of regulatory challenges that could delay its approval.
What’s next for them?
Understanding Ethereum’s Unique Hurdles
In an interview with DL News, Balchunas expresses skepticism about the chances of spot ether ETFs being approved by the SEC before the looming May 23 deadline. He points out the limited communication between the SEC and potential ETF issuers, the unclear regulatory status of Ethereum, and the SEC’s ongoing investigation into the Ethereum Foundation.
Comparing with Bitcoin
While the SEC yielded to pressure and approved spot bitcoin ETFs after legal battles with Grayscale, Balchunas doesn’t see a similar outcome for Ethereum. He notes the hesitance among potential issuers to engage in legal disputes with the SEC, unlike Grayscale. Additionally, the upcoming U.S. election adds another layer of uncertainty, as changes in SEC leadership could affect future cryptocurrency regulations.
Election Dynamics: Peeking into Potential Scenarios
Speculating on the election’s impact, Balchunas suggests that a second term for former President Donald Trump might bring in a more crypto-friendly SEC chair, potentially speeding up Ethereum ETF approvals. However, uncertainties persist regarding Trump’s stance on cryptocurrencies, despite indications of his support.
Analysts also anticipate a positive trend in bitcoin prices under Trump’s administration, but with caution due to past SEC decisions.
Also Check Out: Ethereum Price at Risk as Critical ETF Decision Approaches: What Next For ETH Price?
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