Critical decision week has arrived for spot Ethereum ETFs. Until this week, market analysts, including Bloomberg ETF analysts, thought there was little chance the SEC would approve spot ETH ETFs.
Ethereum ETF Approval Possibility Increased!
However, the ETF pessimism that lasted for weeks suddenly changed yesterday and the probability of the SEC’s approval of ETFs increased to 75% again.
Blommberg ETF analysts Eric Balchunas and James Seyffart think it is much higher in their posts.
“James Seyffart and I are raising our probability of spot Ethereum ETF approval to 75% (from 25% to 75%),” said Bloomberg Senior ETF Analyst Eric Balchunas.
Has Joe Biden’s Cryptocurrency Policy Changed?
While there were sharp increases in altcoins along with Ethereum and Bitcoin (BTC) after these statements, it was evaluated that this change in spot ETH ETFs could be a clue to the change in US President Joe Biden’s crypto policy.
Analysts claim that while there may not be a complete reversal on Biden’s anti-crypto stance, the Biden administration will take a more conciliatory approach towards crypto to avoid alienating potential voters in what could be a very contentious election.
At this point, analysts evaluate that this sudden change in the approval status of ETH ETFs may be a reflection of the Biden government’s policy change.
Speaking to The Block, Eric Balchunas said:
“Some of the political policy seems to have changed rapidly with the increasing likelihood of approvals on Spot Ethereum ETFs.
We see that cryptocurrencies in general are becoming a more politicized issue ahead of the upcoming presidential elections.
I’m not exactly sure, but President Joe Biden’s administration may be trying to appear less stubborn about cryptocurrencies.
“In contrast, rejecting Ethereum ETFs could further fuel the notion that the current president and his administration are anti-crypto.”
Among a series of spot Ethereum ETF applications filed with the SEC, VanEck is first in line. The SEC will make its final decision on VanEck’s application on May 23.
*This is not investment advice.
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