First Ether ETF could be enabled by EU elections ‘wildcard’

The upcoming European Union elections this week could have a significant impact on crypto regulations and the potential approval of spot Ether (ETH) exchange-traded funds (ETFs). According to Jag Kooner, head of derivatives at Bitfinex, these elections present a “wildcard” moment for shaping future crypto regulations. Right-wing parties are expected to gain more influence in the EU during the 2024 elections, which could lead to the introduction of more protective measures for the crypto industry. However, they could also become allies for innovation-friendly crypto regulations. The election outcomes could also affect the implementation of the Markets in Crypto-Assets (MiCA) bill, the EU’s first comprehensive regulatory framework for cryptocurrencies, which is set to take effect in December 2024. Despite the potential for more conservative regulatory policies, spot Ether ETFs are gaining traction in Europe following the approval of 19b-4 filings by the United States Securities and Exchange Commission. This has boosted confidence in European financial institutions regarding Ether ETFs. Some of Europe’s largest banks are also venturing into the crypto space, taking advantage of the clarity offered by the MiCA bill. For example, Germany’s Landesbank Baden-Württemberg (LBBW) announced it would offer crypto custody services to institutional clients, while Raiffeisen, Austria’s largest community banking group, partnered with Bitpanda to provide digital asset services to retail banking customers.