Bitwise exec echoes idea spot Ethereum ETF approvals likely impacted by politics
Quick Take
- Bitwise Asset Management executive Katherine Dowling said spot Ethereum ETFs likely approved due to political concerns.
Much has been made about the surprising turn of events that led to spot Ethereum ETFs gaining initial approval from the Securities and Exchange Commission and how shifting political sentiments may have played a factor.
Bitwise Asset Management executive Katherine Dowling appears to believe politics definitely factored into the SEC's decision to approve the new products.
“I was completely caught off guard," Dowling said while speaking at the Consensus crypto conference on Thursday. "Why did it change? Politics, it suddenly has become a campaign issue.”
Crypto's potential role in upcoming election
When applications for spot Ethereum ETFs gained approval last week, some would-be issuers were caught by surprise, as market watchers had expected the SEC to deny the applications. Widespread speculation has suggested the upcoming elections and President Joe Biden's desire to appear less resistant to crypto helped usher in the approval.
Many signs are pointing to crypto playing a bigger than ever when Americans cast their votes to decide who will serve as U.S. president next year. Trump, historically skeptical of crypto, has recently grabbed headlines by adopting a friendlier stance with regard to digital assets.
In the case of spot Ethereum ETFs, so far, the 19b-4 forms are what have been approved. Before trading can begin, would-be issuers like Bitwise, BlackRock and Fidelity have to file S-1 forms with the SEC. Some analysts expect that the S-1 phase could take a few weeks or a few months to be resolved.
Updated: Earlier version of the story focused on comments related to Trump potentially knowing spot Ethereum ETFs would be approved.
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