Unchained Why Spot Ether ETFs Are Now Likely to Be Approved on Thursday - Ep. 648
May 21, 2024
Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, and Matt Hougan, CIO at Bitwise Asset Management, discuss the surprising turn of events with spot Ether ETFs likely to be approved. They dive into the political factors influencing this decision, particularly the impact of Staff Accounting Bulletin 121. The two also analyze the reasons behind Michael Sonnenshein's departure from Grayscale, as well as insights from recent 13F filings revealing unexpected buyers of Bitcoin ETFs. Their perspectives hint at a shifting crypto landscape and its implications for the future.
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Political Influence on ETF Approval
- The likely approval of Ether ETFs is attributed to political factors, particularly Wall Street's growing interest in crypto.
- The SEC's silence, typically a sign of denial, was reversed, possibly due to the political sensitivity of denying big asset managers.
Wall Street's Impact on Crypto Regulation
- The Senate vote to repeal SAB 121 signals a shift in Washington's attitude towards crypto, driven by Wall Street's desire to participate.
- Wall Street's lobbying efforts, prompted by the success of Bitcoin ETFs and stablecoins' profitability, are changing the regulatory landscape.
Staking in Ether ETFs
- Staking in Ether ETFs might be a later addition, similar to how in-kind creations were delayed for Bitcoin ETFs. The SEC tends to start with a more basic version.
- The initial focus for Ether ETFs will likely be on the core functionality, and the staking will be addressed later.