Washington, D.C. – US lawmakers have pushed for the approval of Ethereum ETFs, leading to a bounce back in Ethereum (ETH) prices following a brief dip on Thursday. This development comes as the Securities & Exchange Commission (SEC) Chair Gary Gensler faced questions regarding the upcoming decision on spot ETH ETFs but refrained from providing any preview.
A bipartisan group of Congress members penned a letter to Gensler urging the approval of spot ETH ETF applications. They emphasized the importance of regulated access to cryptocurrencies for investors through exchange-traded products (ETPs) and suggested applying similar principles used in approving spot Bitcoin ETFs to Ether.
Gensler, while acknowledging that most crypto assets are securities, hinted at the complexity of the decision-making process by addressing the large number of tokens in the crypto space. Despite the anticipation surrounding the SEC’s decision, details regarding the approval of ETF filings remain uncertain until the actual order is released.
Updated 19b-4 forms have been submitted by various exchanges, with only one applicant, Hashdex, yet to complete the process. Fidelity and Grayscale have revised their S-1 applications by removing staking-related language, aligning with the belief that such features may lead to rejections by the SEC.
Experts suggest that while approval for 19b-4 filings seems likely, the process for reviewing spot ETH ETF S-1 applications may take days or even weeks. The potential approval of these ETFs could lead to a significant rally in Ethereum prices, possibly exceeding 75% post-approval.
Looking ahead, the Ethereum community anticipates the Sharding upgrade following the Merge, aimed at enhancing scalability and reducing transaction fees. Another notable improvement is EIP-4844, focusing on decreasing gas fees on the Ethereum network, addressing a longstanding concern within the crypto community.
Furthermore, the development of innovative solutions like Gas tokens allows users to optimize gas usage on the Ethereum network, offering opportunities to navigate high gas prices effectively. These advancements showcase the ongoing evolution and growth within the Ethereum ecosystem, setting the stage for potential market shifts and investment opportunities.