Bloomberg Analyst: SEC's 'Extraordinary' Shift on Ethereum Spot ETF Approval
CryptoNewsTerminal Staff22 May, 2024
Bloomberg Analyst: SEC's 'Extraordinary' Shift on Ethereum Spot ETF Approval
The U.S. Securities and Exchange Commission's (SEC) recent shift in stance on approving a spot exchange-traded fund (ETF) for Ethereum (ETH) has raised eyebrows among industry experts. Bloomberg ETF expert analyst Eric Balchunas called the change "extraordinary" at the X-Space event. "We still need to see this play out, but it's very surprising to see the SEC do a 180 from its previous position," Balchunas said, adding that the move caught even SEC insiders off guard. The SEC has historically been hesitant to approve spot ETFs for cryptocurrencies, citing concerns about market manipulation and investor protection. However, the agency recently indicated a willingness to reconsider its position, with Chairman Gary Gensler signaling openness to a "physically-backed" Bitcoin ETF. Balchunas noted that the SEC's political stance on cryptocurrencies has shifted in recent years, with some lawmakers pushing for greater regulatory clarity. He emphasized that the agency's latest move is significant and could pave the way for future spot ETF approvals.
