Nearing Approval of Ethereum Spot ETF Could Signal Positive Crypto Regulation
According to Bernstein, the approval of an Ethereum Spot ETF could represent a significant regulatory relief for the crypto sector, potentially influencing Solana’s classification as a commodity.
An electoral victory for Trump could lead to a crypto-friendly administration with significant legislative and regulatory changes.
Waiting for approval, Ethereum Spot ETFs could boost the market with launches planned for July or August, according to Galaxy Digital.
The approval of Spot ETFs for Ethereum in the US would establish a significant regulatory precedent for the crypto sector, according to a Bernstein report.
This event would strengthen expectations for SOL, a competitor of ETH, to also be classified as a commodity. This development is eagerly awaited, especially after Bloomberg analysts raised the chances of approving an ether spot ETF by the SEC from 25% to 75%.
Implications for Solana and Potential Election Influence
Du From a more tactical standpoint, the approval of the Ethereum ETF would set a precedent for the first non-Bitcoin blockchain asset to be considered a commodity, raising hopes that Ethereum’s peers (likely Solana) will follow the same path.
According to Bernstein, the approval of an Ethereum Spot ETF would set a precedent for digital assets other than Bitcoin, classifying them as commodities. This increases hopes for Ethereum’s peers, especially Solana, to follow the same path.
Bernstein also emphasized that a Trump electoral victory could result in a more crypto-friendly administration, with legislative support and significant structural changes in the financial integration of cryptocurrencies.
Classification Issues and Market Anticipation
The classification of cryptocurrencies as securities or commodities has considerable implications, especially for ETF approval. For example, ETF applications and their approval could depend on the classification of tokens as commodities. On the other hand, categorization as securities implies stricter regulatory supervision by the SEC.
ETH experienced a significant increase after Bloomberg analysts raised the chances of approval for Ethereum Spot ETFs. Additionally, the SEC has requested applicants to update their filings, indicating that approval is more likely. Bernstein predicts similar price action for ETH, noting that 38% of ethers are locked in staking, and 66% of the ETH supply has not moved in the past twelve months.
Timelines and Speculation on Approvals
The 19b-4 filings for the Ethereum Spot ETF are expected to be approved this week, but the S-1 filings may not become effective for several weeks to months. If the SEC approves the spot ETFs, Galaxy speculates that they could be launched on exchanges in July or August.
