Rumors surrounding Ethereum ETFs have ignited the crypto market earlier this week. The U.S. Securities and Exchange Commission (SEC) might surprisingly approve the first wave on May 23. What is happening behind the institution’s closed doors, and what can we expect tomorrow ?

Ethereum Spot ETFs to launch tomorrow ?

Until this weekend, the crypto ecosystem was resigned to a rejection from the Securities and Exchange Commission (SEC). Historically hostile to the sector, the SEC has been particularly wary of Ethereum spot ETFs, which differ somewhat from Bitcoin spot ETFs.

However, things have moved quickly. Rumors suggest an approval as early as tomorrow. According to Reuters, which reported the news late yesterday, the U.S. financial regulator has contacted exchanges and stock markets to request modifications to the applications.

“SEC officials on Monday asked Nasdaq, CBOE and NYSE to move quickly on updates and changes regarding nominations.”

This is seen as a very positive sign: it’s worth noting that the SEC took similar steps just before approving Bitcoin spot ETFs.

The key date is tomorrow: the institution must decide whether to approve VanEck’s application after delaying its decision for a total of 240 days. The following day, it must rule on applications from ARK Invest and 21Shares. The U.S. financial regulator is therefore under significant pressure.

👉 Also in the news – ETH Up 21%, Bitcoin (BTC) Up 8%…

Directive from above ?

The apparent reversal of the SEC has sparked comments. Many believe the directive came from the Biden administration. The current president is in the midst of a reelection campaign and would not want to alienate pro-crypto supporters… Nor get bogged down in lengthy debates over the SEC’s legitimacy.

According to a source close to the matter interviewed by The Block, it’s an unprecedented turnaround, indicating that the decision was primarily political.

“The SEC is not even coordinated internally yet, which shows that this is most certainly a political decision.”

Meanwhile, Republican candidate Donald Trump is showing his support for cryptocurrencies, which tends to polarize the debate. The challenge for the Democrats would be to appear less stringent regarding the crypto ecosystem.

“Democrats desperately need the youth vote.”

The announcement will be made tomorrow. If the rumors are true, the SEC could approve the very first spot Ethereum ETF. ETH, which has already been on the rise since the weekend, could therefore be affected once again.

Source : Reuters, The Block