tl;dr
Head of Research at Galaxy Research, Alex Thorn, speculated on a potential SEC distinction between Ethereum and staked Ether, which could create a regulatory loophole for approving spot Ethereum ETFs. Bloomberg Intelligence ETF analysts also increased the likelihood of spot Ether ETF approval from 2...
Speculation is rife regarding a potential SEC distinction between Ethereum and staked Ether for the possible approval of spot Ethereum ETFs. Bloomberg analysts have raised the likelihood of spot Ether ETF approval from 25% to 75%, citing a potential shift in the SEC's stance and political influence. This news has resulted in a considerable surge in Ethereum's value.
Alex Thorn, Head of Research at Galaxy Research, speculated on the SEC potentially differentiating between Ethereum and staked Ether, creating a regulatory loophole for approving spot Ethereum ETFs. He suggested that this development could enable the SEC to approve these ETFs while maintaining consistency with its previous arguments and positions.
However, Thorn also noted that this approach might involve specific restrictions on spot Ethereum ETFs, possibly including a prohibition on ETFs from staking the ETH they hold. By making a distinction between ETH and staked ETH, the SEC could allow for the introduction of spot Ethereum ETFs while maintaining strict regulatory oversight.
Bloomberg Intelligence ETF analysts Eric Balchunas and James Seyffart have increased their predicted likelihood of a spot Ether ETF approval from 25% to 75%. This change follows discussions suggesting that the SEC might adopt a more favorable stance towards these applications. Balchunas hinted that the SEC's increased pace toward approving the ETF could be influenced by political pressure, contrasting with the agency's previous lack of engagement with ETF applicants.
Ethereum's value has surged by over 20% following news that the SEC might approve spot ETH ETFs, despite the market’s earlier consensus that approval was unlikely.