Prospects for Ethereum ETF Approval Increase as Democrats Seek ‘Political Points’

It seems that crypto bulls have returned in full force after the likelihood of spot Ethereum ETFs being approved increased on Thursday, May 23.

The news comes amid reports that the Securities and Exchange Commission (SEC) has reversed its stance on Ethereum ETFs, likely due to political pressure, with reports indicating that the regulator is asking issuers to update their 19b-4 filings.

Ethereum has surged significantly, up by 18.4% in the last 24 hours, currently trading around $3,665 at the time of writing, the highest price since April 9, according to CoinGecko.

While it is unclear what caused the sudden change, Bloomberg ETF analyst Eric Balchunas and other industry experts speculate that it could be due to a ‘turnaround’ in Congress regarding the outlook on crypto.

– Approval suddenly seems likely – commented Henrik Andersson, Chief Investment Officer at asset manager Apollo Crypto.

– There has been a turnaround in Washington that ignited SAB 121 where members of both parties voted to block the legislation – said Andersson. He added that Americans holding cryptocurrencies could be an important voting bloc in this election year.

– This could mean that winter is over and it’s time for an American crypto renaissance – said Adam Cochran, partner at venture capital firm Cinneamhain Ventures.

Ryan Sean Adams, one of the hosts of the Ethereum podcast Bankless, says that the political shift could mark the end of ‘Operation Choke Point 2.0’, a series of SEC lawsuits and newfound support for regulations tailored to cryptocurrencies.

Meanwhile, the founder and CEO of Galaxy Digital, Mike Novogratz, stated that he has never felt ‘more confident’ in the crypto industry and the institutional adoption that could follow in the next 12 to 24 months.

Digital assets are becoming an increasingly important issue as the elections in the U.S. approach

Republican candidate and political rival Donald Trump has recently made several attempts to win over the industry, including a dinner he hosted with dozens of NFT enthusiasts at his home in Florida on May 8.

During the dinner, Trump scored big points among the crypto crowd after promising to help prevent local innovators from leaving the country. He also used the event to mock President Joe Biden’s knowledge of cryptocurrencies.

Some speculate that this has prompted Democrats to also seek ‘political points’.

A survey conducted by the Digital Currency Group recently showed that a candidate’s stance on cryptocurrencies could influence how people in several swing states decide to vote.

The U.S. presidential election will be held on November 5, 2024.