In the cryptocurrency market, attention is focused on the upcoming decision by the US Securities and Exchange Commission (SEC) regarding spot Ethereum exchange-traded fund (ETF) applications. Numerous US-based investment management firms, including BlackRock, VanEck, and Fidelity, have submitted a total of 10 spot Ethereum ETF applications to the commission. These companies are advocating for Ethereum to be traded on traditional exchanges through spot ETFs, similar to Bitcoin.
Previously, the SEC postponed its decision on these ETF applications. With the ability to delay applications up to three times, the SEC must announce its decision on the “VanEck Ethereum ETF” by the end of May 23.
Amidst anticipation of the approval of Ethereum ETFs this week, the cryptocurrency market has experienced a surge, with Ethereum’s price exceeding $3800 and Bitcoin’s price surpassing $70,000.
USA is Influencing the Election Process, Says Expert on Crypto Market Trends
Kadir Has University New Media Department Lecturer İsmail Hakkı Polat highlighted a shift in the cryptocurrency market dynamics influenced by the upcoming US presidential election. Polat noted that initial optimism surrounding Ethereum grew after the approval of the spot Bitcoin ETF, but this sentiment turned negative following remarks from SEC Chairman Gary Gensler.
Polat explained that the political landscape began to shift as the US presidential election neared. He pointed out that the Democrats have started to adopt a more anti-crypto stance as Republican Donald Trump has shown a somewhat positive attitude towards cryptocurrencies. This political shift has significantly influenced the expectations surrounding spot Ethereum ETFs.
“Recent research in the USA shows that approximately 20 percent of the population has invested in cryptocurrency at least once,” Polat said. “As the election process approaches, cryptocurrencies are becoming more prominent in public discourse. I see that the possibility of ETF approval has increased significantly, likely influenced by these political developments. The Democrats do not want to appear anti-crypto.”
Polat emphasized the broader implications of ETF approval, stating, “ETF approval could open the door to blockchain innovations.” He elaborated that while Bitcoin holds a distinct position in the market, Ethereum serves as a platform for numerous transactions via smart contracts. A positive decision could therefore have a beneficial impact on other assets similar to Ethereum.
Conversely, Polat warned that a negative outcome could lead to disappointment. “If the ETF is not approved, the speculative increase seen in the last three days may give way to a more negative outlook for Ethereum,” he said.
Polat also underscored the significance of ETFs, noting that they act as guarantors of financial institutions in the eyes of investors, thereby creating new investment opportunities for corporates. The approval of ETFs could thus catalyze further innovations within the cryptocurrency and blockchain sectors.
Source: Trthaber / Prepared by Irem Yildiz