Remarkable Comment from Bernstein Analysts for Spot Ethereum ETFs: It Was Forced!

Speculation initially speculated that political pressure, particularly from Democrats aiming to reassure undecided voters ahead of November's US Presidential election, was driving the SEC's sudden shift towards approving spot Ethereum ETFs. However, Bernstein analysts noted that President Joe Biden's decision in the SEC's Staff Accounting Bulletin (SAB) No. He thinks this narrative has lost credibility after he vetoed the 121 repeal bill. A Prize Pool Worth 21 Million TL is Awaiting You from BinanceTR! Participating and winning has never been easier. Sign up to BinanceTR from this link and get your first crypto!

According to Bernstein's Gautam Chhugani and Mahika Sapra, the SEC has found itself in a difficult position regarding Ethereum ETFs due to similarities with spot #Bitcoin ETFs. These similarities include correlation with the spot and futures markets, as well as the presence of active Ethereum futures products on the Chicago Mercantile Exchange, indicating ETH's commodity status.

Analysts have suggested that the #SEC is likely taking a pragmatic approach to avoid becoming the target of potential lawsuits and finding itself in the middle of a legal battle, pointing to a more nuanced decision-making process beyond political influence.

Despite the unexpected approval, Bernstein acknowledged that the SEC's decision has positive implications for the industry, emphasizing its importance for market participants.

Bernstein's discussions with spot #Ethereum ETF applicants had skewed market expectations more toward a rejection than an approval, especially given the silence of #SEC staff leading up to the decision date. That's why the SEC's approval of ETFs caused surprise. However, #ETF issuers were asked to resubmit the required documents just days before approval, indicating that the situation is changing quickly.
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