Crypto Market Sees Sudden Shift as Democrats Change Stance on Bitcoin and Ethereum ETFs
The crypto market has been on a wild ride this week, with a crucial vote still to come. The bitcoin price has been boosted by a Democratic vibe shift that’s been credited with potentially helping to change the U.S. Securities and Exchange Commission’s (SEC) stance on the approval of a number of spot ethereum exchange-traded funds (ETFs) ahead of an expected decision this week.
Crypto prices surge as Democrats shift stance on ETFs
Galaxy Digital chief executive Mike Novogratz, a former Goldman Sachs partner and crypto stalwart, has predicted bitcoin, ethereum and crypto prices “are going to be much higher than here” due to the political sea-change. According to Novogratz, a “widespread shift amongst Democrats” over the last 24 hours has led the SEC to reverse course on its planned rejection of spot ethereum ETFs this week.
“It feels like someone at the Biden White House made a call and said ‘Guys, we can’t be the party against crypto anymore.’”
The crypto divide between Trump and president Joe Biden has “set off a firestorm” in Washington D.C., according to Novogratz. “It almost became a purity test—Republican good for crypto, Democrat bad for crypto. And the Democratic regime woke up and said ‘This is crazy.’”
Ethereum ETFs on the horizon
The ethereum price rocketed around 30% this week after Barron’s reported the SEC had notified the exchanges on which the ethereum ETFs would possibly trade that it’s leaning toward approval. Earlier this week, Bloomberg Intelligence ETF analysts James Seyffart and Eric Balchunas suggested the SEC’s u-turn on whether to approve the ethereum ETFs was due to the changing political winds.
The U.S. House of Representatives is expected on Wednesday to vote on the Financial Innovation and Technology for the 21st Century Act known as Fit21, which would split up responsibility for cryptocurrency regulation between the SEC and the Commodities Futures Trading Commission (CFTC).
Crypto regulation in the spotlight
As the crypto market continues to evolve, one thing is clear: the political landscape is shifting, and crypto is at the forefront of the conversation. With the Fit21 vote looming, one thing is certain—the future of crypto has never been more uncertain.
