- Approval of ETFs for Ethereum could accelerate adoption, defying current regulatory and political hurdles.
- A change in the U.S. presidency could influence the SEC to approve cryptocurrency ETFs such as Ethereum.
In a recent interview on the Bitcoin Suisse podcast, macroeconomics expert Alex Krüger described Ethereum as the “slow horse” in the world of digital assets.
For him, this term is justified by Ethereum’s size and established position in the market. The situation surrounding exchange-traded funds (ETFs) could be one element to break this inertia and accelerate Ethereum’s pace.
Regulatory and political challenges
Uncertainty dominates around whether Ethereum will get approval for its ETFs. Krüger points to the obstacle posed by Gary Gensler, chairman of the SEC (U.S. Securities and Exchange Commission). Gensler’s explicit views on cryptocurrencies could complicate the approval of Ethereum ETFs.
A possible change of political scenario
However, Krüger mentions a possible way out in the face of this challenging scenario. He suggests that a Donald Trump win in the 2024 presidential election could lead to Gensler’s resignation as SEC chairman. This would open up an opportunity for Ethereum and other cryptocurrencies to finally get approval for their ETFs.
Previous decisions and market expectations
Last month, the SEC approved Bitcoin ETFs in the spot market after years of denials. These instruments offer investors a way to have exposure to an asset without owning it directly.
Krüger, with a positive view toward Ethereum, thinks the market could boost the likelihood of approval for ETFs of this cryptocurrency in the spot market. This could result in a surge for Ethereum in the coming months, outperforming even Bitcoin.
A possible change of direction
The approval of Ethereum ETFs would mark an important point in the history of this cryptocurrency. Despite regulatory and political challenges, investors are keeping an eye on these developments, as they could influence the future of Ethereum and its global adoption.
At the time of writing, ETH is trading at $2,798.04. With an increase of 2.15% in the last 24 hours.
