Crypto News – What Factors Influence Coinbase’s Expectation of Spot ETH ETF Approval?

Crypto News – Spot ETH ETF Approval and Coinbase’s Expectations

Crypto News – The SEC may authorize spot Ethereum ETFs based on the same primary driver that supported the approval of spot Bitcoin ETFs, according to Coinbase Institutional Research Analyst David Han‘s May 15 research. This driver is the correlation between CME futures products and spot exchange rates. 

According to Han, there’s a chance that this choice will surprise investors to the positive, given the state of prediction markets and the 24% discount Grayscale Ethereum Trust is currently trading at. He did acknowledge that there is now “uncertainty” as a result of the SEC’s silence and that spot ETH ETFs that want to engage in ETH staking are unlikely to be approved.

The Impact of the US Presidential Election on ETF Approval

Because cryptocurrency plays such a significant role in US politics, Coinbase is confident. Han stated that by rejecting spot ETH ETFs, the SEC will use political capital—a move that Coinbase considers questionable. Similar remarks were made by Ryan Sean Adams, the founder of Bankless, who said the Democrats shouldn’t have been expecting much support until they realized that the anti-crypto SEC chair may cost them an election. Neither spoke about any particular political developments. Recent polls, however, indicate that cryptocurrency owners marginally prefer Trump to Biden.

In contrast to the Biden administration’s regulatory stance, cryptocurrency has been characterized by Uniswap founder Hayden Adams as a Republican rallying issue. The agency has a Democratic majority and leadership due to SEC Chair Gensler, two other Democratic voting commissioners, and two Republican voting commissioners. 

FAQ

For more up-to-date crypto news, you can follow Crypto Data Space.