If you have any semblance of interest in cryptocurrency trading, you should’ve already heard that the Ethereum ETF approval by the SEC (Securities and Exchange Commission) is well on its way. Cryptocurrency investors are about to get the opportunity to buy into some brand new exchnage-listed products in the coming days or weeks, pending final confirmation from the regulator.
The long-held opposition on part of the chief US financial regulator and its Chair Gary Gensler to the second largest cryptocurrency by market cap receiving a dedicated ETF listed on US exchanges, has been largely overcome, and not without political pressure.
Coinciding with the passing of a key cryptocurrency-related bill by the U.S. House of Representatives, called FIT 21 on Wednesday, the Ethereum ETF approval could set the stage for a broader cryptocurrency market rally. That said, the Financial Innovation and Technology in the 21st Century Act still needs approval in the Senate to be signed into law.
Political Pressure for the Ethereum ETF Approval
The approval of the Ethereum ETF has been a marked shift in regulatory opinion – up until this week the market has not been pricing in an approval of the product in the immediate future, and that literally changed with a couple of tweets. Arguably, the first one was from Bloomberg’s Senior ETF Analyst Eric Balchunas.
Update: @JSeyff and I are increasing our odds of spot Ether ETF approval to 75% (up from 25%), hearing chatter this afternoon that SEC could be doing a 180 on this (increasingly political issue), so now everyone scrambling (like us everyone else assumed they’d be denied). See… https://t.co/gcxgYHz3om
— Eric Balchunas (@EricBalchunas) May 20, 2024
The resulting circa 20% rally in Ethereum
