Donald Trump’s Pro-Bitcoin Stance Influenced Ethereum ETF Approval, Analyst Posits
By Benzinga
Bloomberg Intelligence ETF analyst James Seyffart believes political considerations played a significant role in the SEC’s surprise approval of Ethereum (CRYPTO: ETH) ETFs earlier this year.
What Happened: In an interview with “BitLab Academy,” Seyffart pointed to several factors that likely influenced the SEC’s decision, including Donald Trump‘s pro-Bitcoin stance, bipartisan support for crypto-friendly legislation and the growing recognition of crypto supporters as an important voting bloc.
“The political process 100% was involved,” Seyffart stated in a recent interview. “How much is up for debate, but it was definitely political to some regard.”
The analyst suggested the SEC may have realized denying Ethereum ETFs would lead to losing in court, similar to their Bitcoin ETF defeat. However, he noted the lack of typical approval signals made the sudden green light unexpected.
“There was radio silence…then boom, the whole landscape shifted,” Seyffart noted.
Also Read: Time To Become Bullish On Ethereum? Top Trader Highlights Reasons Why It May Just Be
Why It Matters: Seyffart sees potential for additional crypto ETF products, including a market cap-weighted Bitcoin (CRYPTO: BTC) and Ethereum index fund. However, he believes approval for other tokens like Solana (CRYPTO: SOL) faces significant hurdles in the near term.
“If you follow precedent, not happening anytime soon,” he said regarding a Solana ETF. “I think that precedent will change over time, it’s just a matter of how quickly.”
Seyffart emphasized the crypto industry’s growing political clout could accelerate regulatory shifts, especially if the White House changes hands in November. However, he cautioned that meaningful changes would still take time due to the complexities of appointing new agency leadership and passing legislation.
What’s Next: The influence of Ethereum as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
Read Next:
Image: Shutterstock
