US lawmakers are ramping up pressure on the Securities and Exchange Commission (SEC) to approve a spot Ether (ETH) exchange-traded fund (ETF). This development comes amidst growing anticipation surrounding the potential green light for such a product.
A letter signed by a bipartisan group of House lawmakers, including Tom Emmer (R) and Josh Gottheimer (D), was sent to SEC Chair Gary Gensler on May 22nd. The letter urges the SEC to approve spot Ether ETFs, highlighting the potential advantages for investors.
Arguments for Approval
1. Lawmakers argue that a spot Ether ETF would provide investors with a more regulated and secure way to access ETH than existing options.
2. They emphasize the need for a “consistent and equitable approach” when reviewing applications for digital asset-backed ETFs.
3. The letter parallels Bitcoin and Ether, suggesting the SEC should apply similar approval standards for both.
Bloomberg ETF analyst Eric Balchunas noted the letter’s mention of “other digital assets” potentially eligible for ETF structures. This raises questions about the future scope of ETF offerings in the cryptocurrency market. Balchunas anticipates the ETF industry potentially pushing for approval of ETFs for various cryptocurrencies, potentially testing the SEC’s stance.
This letter from House lawmakers signifies increasing pressure on the SEC regarding spot Ether ETFs. The potential approval of such an ETF could have significant implications for investor access and broader cryptocurrency adoption in the US. The additional mention of “other digital assets” suggests the potential for a broader range of cryptocurrency ETFs in the future, subject to SEC approval processes.
