House lawmakers send letter to Gary Gensler Urging SEC to approve spot Ethereum ETFs

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As a researcher with a background in finance and cryptocurrency, I’m closely following the developments regarding the potential approval of a spot Ethereum ETF by the SEC. The recent bipartisan letter from US lawmakers urging the commission to approve such products is an intriguing development that could pave the way for regulated, transparent, and safe access to digital assets for investors.

US lawmakers are imploring the SEC to approve spot Ethereum ETFs.

As an analyst, I’m keeping a close eye on the upcoming decision regarding a spot Ethereum Exchange-Traded Fund (ETF) by the Securities and Exchange Commission (SEC). In preparation for this development, a bipartisan group of House legislators, including myself as Majority Whip Tom Emmer and my Democratic colleague Josh Gottheimer, have penned a letter to SEC Chair Gary Gensler. We strongly encourage the commission to approve spot Ethereum ETFs, alongside other digital assets. By doing so, we believe investors will be granted regulated, transparent, and secure access to the cryptocurrency market.

JUST IN: 🇺🇸 US lawmakers urge SEC to approve spot Ethereum ETFs, Politico reports.

— Watcher.Guru (@WatcherGuru) May 23, 2024

As an analyst, I would advocate for the commission to adopt a uniform and impartial stance when examining future proposals for digitally-backed Exchange Traded Products (ETPs).

Legislative impact and Solana ETF

As an analyst, I would rephrase it as follows: The passage of recent laws, including the Financial Innovation and Technology for the 21st Century Act (FIT21), is expected to streamline the approval process for Exchange-Traded Funds (ETFs) involving digital assets. Although Chairman Gensler has expressed his opposition to FIT21 publicly, this legislative push suggests a growing consensus among regulators in favor of regulated investment products based on digital assets.

In their letter, lawmakers referred to “additional digital assets” besides Ethereum, implying that other cryptocurrencies could be considered for listing as spot Exchange-Traded Funds (ETFs).

I find it intriguing that they refer to “other digital assets” instead of specifically mentioning Ethereum. It will be worth monitoring how aggressively the ETF industry explores new boundaries in this area, given its propensity for innovation. I won’t be surprised if they capitalize on any potential weaknesses in the SEC’s stance and file a barrage of applications.

— Eric Balchunas (@EricBalchunas) May 23, 2024

As a financial analyst, I have come across the perspective of certain market observers who hold the view that Solana (SOL) could potentially be the next cryptocurrency to secure an Exchange-Traded Fund (ETF), following in the footsteps of Bitcoin (BTC) and Ethereum (ETH). The approval of a Solana ETF would undoubtedly generate significant interest, with demand likely ranking second only to that of Bitcoin and Ethereum.

Earlier this year, a Bitcoin ETF increased attention and investment for a spot Ethereum ETF. 

Spot Ethereum ETF implications

The upcoming Ethereum ETF ruling is generating excitement within the cryptocurrency world. According to certain analysts, including QCP Capital, the price of Ether could surge by approximately 60% if an ETF is approved.

As an analyst, I’ve noticed that some notable players in the ETF industry, including BlackRock Inc., Fidelity, VanEck, Invesco/Galaxy, Ark Invest, and Franklin Templeton, have made adjustments to their filing documents with the Securities and Exchange Commission (SEC) in preparation for obtaining approval for their ETFs.

Should a proposal for an Ethereum spot Exchange-Traded Fund (ETF) be rejected, legal action may ensue, mimicking the response after the early refusals of spot Bitcoin ETF proposals.

The SEC’s decision is expected to be announced around 4:00 p.m. EST on Thursday

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2024-05-23 18:00