Bloomberg ETF analyst James Seyffart believes that the recent approval of spot Ethereum ETFs was likely influenced by political decisions rather than purely financial considerations. In an interview with Cryptonews’ Rachel Wolfson at Consensus 2024, Seyffart discussed the timeline and approval process for spot ETH ETFs, including the 19b-4 rule change and the role of the SEC. He suggested that political factors, including actions by the Biden administration and responses from the crypto community, played a significant role in the approval going through. On May 23, the SEC officially approved 19b-4 applications from various financial institutions for issuing spot Ether ETFs, marking a significant shift in the SEC’s usual stance.
Initially, there were low expectations for the approval of spot ETH ETFs due to SEC hostility and lack of communication, Seyffart said during the interview. He noted that the approval was seen as a deviation from the SEC’s usual stance, possibly indicating a shift influenced by political pressures. Seyffart highlighted the timing of the decision, which aligns with significant political events such as Trump’s pro-crypto stance and bipartisan support for crypto-friendly legislation. As experts in the ETF space, Seyffart and his colleague Eric Balchunas had raised the likelihood of spot ETH ETF approval to 75%, up from the previous estimation of 25%, especially with the final deadline for 19b-4 forms passing last week.
The approval process for ETFs involves multiple steps, including a 19b-4 approval and the prospectus (S1) review, which can take months. Seyffart predicted that the Ethereum ETFs might launch within weeks, despite the arduous approval process. However, he suggested that the approval of other crypto ETFs, such as Solana, is unlikely without significant regulatory changes. Seyffart emphasized the need for a regulated market to monitor these assets for fraud and manipulation. In contrast, crypto investor Brian Kelly has suggested that Solana could potentially become the next cryptocurrency to have a spot ETF in the United States, highlighting the ongoing developments and potential opportunities in the crypto ETF space.
Cryptonews reporters Rachel Wolfson and Matt Zahab are currently at Consensus 2024, one of the biggest crypto events globally, conducting interviews with industry leaders, pioneers, and analysts like James Seyffart. They bring the latest updates from the event, providing insights into the evolving landscape of crypto ETFs and regulatory developments. Seyffart’s analysis sheds light on the political considerations behind the approval of spot ETH ETFs and the potential implications for the future of crypto ETFs in the market. The approval of spot Ethereum ETFs represents a significant milestone in the ETF space and reflects the growing acceptance and adoption of cryptocurrencies in traditional financial markets.
Overall, the approval of spot Ethereum ETFs was influenced by political decisions, as highlighted by Bloomberg ETF analyst James Seyffart. The approval process involved multiple steps, including a 19b-4 approval and prospectus (S1) review, with the final deadline passing recently. Seyffart predicted that the Ethereum ETFs might launch within weeks, despite the arduous approval process. However, he believes that the approval of other crypto ETFs, such as Solana, is unlikely without significant regulatory changes. The ongoing developments in the crypto ETF space, as discussed at Consensus 2024, reflect the evolving landscape of crypto investments and regulatory frameworks. As experts in the field, Seyffart and his colleagues provide valuable insights into the factors shaping the future of crypto ETFs and their impact on traditional financial markets.
