Political analyst James Seyffart from Bloomberg believes that the recent approval of Ethereum ETFs was influenced by political factors rather than purely financial reasons. In an interview with Cryptonews’ Rachel Wolfson at Consensus 2024, Seyffart discussed the approval process for spot ETH ETFs, highlighting the role of the SEC and the recent rule change.
Seyffart suggested that the political climate, including actions by the Biden administration and responses from the crypto community, played a significant role in the approval of spot Ether ETFs. Despite initial low expectations due to SEC hostility and lack of communication, the approval was ultimately granted, indicating a potential shift in the SEC’s stance influenced by political pressures.
The SEC officially approved 19b-4 applications from various firms for issuing spot Ether ETFs, including VanEck, BlackRock, Fidelity, and others. This decision came as a surprise, with Seyffart noting that the SEC had initially planned to deny the Ethereum ETFs until the week before.
Seyffart and his colleague Eric Balchunas have gained recognition in the ETF space for their analysis of Bitcoin and Ethereum ETFs. They increased the likelihood of spot ETH ETF approval to 75%, especially with the final deadline for 19b-4 forms passing recently. Seyffart predicted that Ethereum ETFs could launch within weeks, despite the typically lengthy approval process.
While Bitcoin and Ethereum ETFs have seen approval, Seyffart expressed skepticism about the likelihood of other crypto ETFs, such as Solana, gaining approval without significant regulatory changes. He emphasized the need for a regulated market to monitor these assets for fraud and manipulation.
In contrast, crypto investor Brian Kelly suggested that Solana could potentially become the next cryptocurrency to have a spot ETF in the United States. During a recent episode of CNBC’s ‘Fast Money’, Kelly highlighted Solana as a potential candidate, alongside Bitcoin and Ethereum, as the “big three” for this cycle.
Cryptonews reporters Rachel Wolfson and Matt Zahab are providing updates from Consensus 2024, interviewing industry leaders like James Seyffart and sharing insights from one of the biggest crypto events globally. Follow their coverage for the latest developments in the crypto space.
