- After months of speculation, an approval for spot Ethereum ETFs by the SEC appears imminent.
- Heightened political discourse is likely behind the regulatory body’s turnaround, who just weeks ago seemed set to decline applications for Ether-based funds.
- An approval may come as soon as tonight.
After months of umming and ahhing, the SEC appears to have finally decided on whether to approve a spot Ether ETF – and the answer might send ETH to the moon. The mood among the community was relatively despondent, with most believing the US regulatory body was almost certain to decline an Ethereum ETF.
An analyst with key industry sources, Bloomberg’s Eric Balchunas, had put the likelihood of an ETF approval at 25% mere weeks ago. Yet, a spectacular turnaround in just a handful of days means we could see an Ether ETF within the week.
Related: Standard Chartered Predicts Ethereum Could Reach $8,000 by Year’s End
Politics Behind ETF Turnaround, Decision to Come Tonight
Let’s not get ahead of ourselves – as of writing this article, there’s been no official announcement. There is still a chance that the SEC turns the industry on its head (again) and denies Ethereum ETF applications. Regardless, the world will know sooner rather than later.
There’s lots of evidence that suggests ETF approval is almost a shoo-in though. For starters, VanEck’s Ether ETF (symbol ETHV) has been listed by the Depository Trust and Clearing Corporation (DTCC) an important first step toward trading.
Similarly, several high-profile asset managers such as the aforementioned VanEck, Invesco and 21Shares made amendments to their ETF filings within half an hour of each other. This suggests that, after direct communication with the SEC, they’ve made last-minute adjustments in preparation for approval.
The rationale behind the stunning reversal seems to be mostly politically motivated. With the Ether ETFs on a crash course for failure, presidential candidate Donald Trump began pushing a pro-crypto stance as part of his election campaign. By increasing scrutiny on the sector, he positioned his Republican party as “pro-crypto”, while setting up the Democrats as “anti-crypto”.
Not wanting to get caught on the wrong side of history, some have speculated that Democrats and leader Joe Biden wanted to change this narrative before it took hold – potentially leading to the SEC’s turnaround.
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