Crypto enthusiasts are back in full force as rumors swirl about the approval of a spot Ether exchange-traded fund (ETF). The United States Securities and Exchange Commission (SEC) has reportedly reversed its stance on spot Ether ETFs, possibly due to political pressure. Reports suggest that the SEC has requested ETF exchanges to update their 19b-4 filings. As a result, Ether (ETH) has surged by 19.4% in the last 24 hours, reaching a trading price of $3,685, its highest since April 9, according to CoinGecko.
The sudden shift in the market has left experts speculating about the reasons behind it. Bloomberg ETF analyst Eric Balchunas and other industry pundits believe that there could be a “turning tide” in Congress when it comes to crypto. Henrik Andersson, the chief investment officer at asset manager Apollo Crypto, commented that an approval for a spot Ether ETF now seems likely. He attributed this change in sentiment to the recent SAB 121 bill, which saw members from both parties voting against it. Andersson believes that crypto-owning Americans could play a crucial role as voters in the upcoming election year.
Adam Cochran, a partner at venture capital firm Cinneamhain Ventures, expressed his optimism about the potential approval of a spot Ether ETF, stating that it could signify the end of a “crypto winter” and mark the beginning of a US renaissance in the crypto industry. Ryan Sean Adams, host of the Ethereum podcast Bankless, believes that a political shift could lead to the end of “operation choke point 2.0,” a series of SEC lawsuits, and the emergence of crypto-friendly regulations.
Mike Novogratz, founder and CEO of Galaxy Digital, also shared his confidence in the cryptocurrency industry and the potential for institutional adoption in the next 12 to 24 months. He expressed this sentiment during the CNBC Financial Advisor Summit.
With the US election approaching, digital assets have become an increasingly important issue. Republican candidate Donald Trump has made efforts to gain support from the crypto industry, hosting a dinner with nonfungible token enthusiasts and promising to prevent innovators from leaving the country. This has likely prompted the Democrats to also pay attention to crypto and seek political points.
A recent poll conducted by Digital Currency Group revealed that a candidate’s stance on cryptocurrencies could influence voters in swing states. The US presidential election is scheduled for November 5, 2024.