Ethereum ETF Approval Seen as Politically Influenced Decision, According to Bloomberg Analyst James Seyffart
During an interview with Cryptonews’ Rachel Wolfson at Consensus 2024, Bloomberg ETF analyst James Seyffart suggested that the recent approval of spot Ethereum ETFs may have been influenced more by political factors rather than purely financial considerations. Seyffart discussed the approval process for spot ETH ETFs, including the 19b-4 rule change and the role of the SEC, highlighting the impact of the political climate and actions taken by the Biden administration on the approval.
On May 23, the SEC officially approved 19b-4 applications from various companies, including VanEck, BlackRock, Fidelity, and others, allowing them to issue spot Ether ETFs. This approval came as a surprise considering the initial low expectations due to SEC hostility and lack of communication, according to Seyffart. He noted that the decision seemed to deviate from the SEC’s usual stance, possibly indicating a shift influenced by political pressures.
Seyffart and his colleague, Eric Balchunas, are well-known in the ETF space for their analysis of Bitcoin and Ethereum ETFs. They increased the likelihood of spot ETH ETF approval to 75%, up from the previous estimation of 25%, especially after the final deadline for 19b-4 forms passed last week. Seyffart predicted that the Ethereum ETFs could launch within weeks, despite the usual lengthy approval process.
While Bitcoin and Ethereum ETFs have gained approval, Seyffart believes that other crypto ETFs, such as Solana, are unlikely to be approved without significant regulatory changes to monitor these assets for fraud and manipulation. However, crypto investor Brian Kelly has suggested that Solana could potentially become the next cryptocurrency to have a spot ETF in the United States, alongside Bitcoin and Ethereum.
At Consensus 2024, Cryptonews reporters Rachel Wolfson and Matt Zahab are providing updates from the event, including interviews with industry leaders and analysts like James Seyffart. Follow their coverage for the latest insights and developments in the crypto space.