Bloomberg ETF analysts now believe that the chances of the U.S. government approving spot Ethereum (ETH) ETFs are much more likely than previously anticipated.
Bloomberg ETF analysts now believe that the chances of the U.S. government approving spot Ethereum (ETH) ETFs are much more likely than previously anticipated. Eric Balchunas, Senior ETF Analyst at Bloomberg, shared that he and fellow analyst James Seyffart now give spot Ether ETF approval odds of 75%, up from the previous 25%. Balchunas attributed this change in sentiment to rumors circulating within the Securities and Exchange Commission (SEC) that suggest a potential reversal of their stance on the matter.
Sources familiar with the matter revealed that conversations between a potential issuer of a spot ether ETF and the SEC have been progressing positively. A report from the Wall Street Journal stated that SEC's Trading and Markets Division has informed ETF asset managers on Monday to amend their Form 19b-4 filings and refile them.
The discussions indicate a potential shift in the political landscape surrounding cryptocurrencies, especially with the upcoming presidential election. Balchunas pointed out that former President Donald Trump has positioned himself as a crypto-friendly candidate, accepting political donations in crypto and engaging with NFT buyers. Increased political pressure related to cryptocurrencies emerged when the U.S. Senate passed a pro-crypto legislation overturning the SEC's Staff Accounting Bulletin 121. The resolution received support from leading Democrats, including Senate Majority Leader Chuck Schumer.
The impact of this news was immediately felt, as the price of ETH experienced a significant spike of nearly 16% following the analysts' posts. ETH, which had been trading at around $3,090, surged to $3,713 in the past 24 hours. Ethereum is currently trading at $3,686.
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