Ethereum regulatory clarity is much more important than ETH cash ETFs: here’s why

Ethereum Price Is Rising; one analyst believes regulatory clarity for ETH is more important than spot ETF approval – here’s why.

This week was huge for cryptocurrencies, but especially for Ethereum.

It is rare for the United States Securities and Exchange Commission (SEC) to make decisions “in a hurry.” Performing a 180-degree turn in a given position is also extremely rare.

So it came as a relief to cryptocurrency advocates when discussions on spot issuances of Ethereum ETFs accelerated this week, culminating in the approval of all listings.

ETH and Bitcoin prices skyrocketed before returning to spot rates.

What is clear, however, is that U.S. regulators and the Biden administration appear to appreciate the underlying technologies and products and the importance they have for “young” voters.

This change, providing ETH with much-needed regulatory clarity, has raised sentiment to new heights, even eclipsing concerns about the potential retail investor frenzy that was seen when spot Bitcoin ETFs launched in January.

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Previously, market observers initially feared that the approval of a spot Bitcoin ETF could trigger a wave of “Degen” (highly speculative) retail investment in BTC. That wasn’t the case. If anything, advancement was institutionally driven.

The same will be seen once the Ethereum ETF spot shares begin trading in the coming weeks.

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Ethereum (and Proof-of-Stake platforms) find regulatory relief

Jim Bianco, currently a macro researcher he believes The fear of “degen” trading (or monkeying) may be unfounded.

In the post on X, Bianco highlights Ethereum’s unique features and ecosystem features that will attract different types of investors compared to BTC, a HODL coin useful for hedging against rising inflation.

He notes that proof-of-stake transparency once an Ethereum ETF listing is approved could spark even more interest in Ethereum and its traded ETH.

The researcher further notes that the vote on FIT21 and SAB 121 in recent days was crucial and helped support innovation.

Following the vote on SAB 121, public companies governed by the US SEC can now freely hold coins.

This, in turn, helps ensure transparency in proof-of-stake projects like ETH.

Bianco also said that Martin Gruenberg’s resignation from the Federal Deposit Insurance Corporation (FDIC) is huge for the industry. Gruenberg has been a critic of cryptocurrencies.

The sudden change in attitude of the US SEC could also mean the end of the so-called “Operation Chokepoint 2.0”. Analysts say the aim of this operation was to stifle innovation in this sphere, which would limit the expansion of cryptographic solutions, especially those based on Ethereum.

Bottom line: will Wall Street focus on ETH?

The macro researcher currently believes that the latest cryptocurrency regulations in the United States, especially regarding Ethereum, are more important than the approval of spot ETH ETFs.

In particular, Ethereum’s newfound transparency will fuel the development of proof-of-stake ecosystems, indirectly helping to improve other protocols, including Solana.

This clarification will allow Wall Street to flow into Ethereum. Unlike Bitcoin, Ethereum offers a wide range of financial services, including tokenization, insurance, lending, and more.

The extensive offering allows Wall Street players to explore more options beyond just HODL and even supporting prices.

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Disclaimer: Crypto is a high-risk asset class. This article is for information purposes only and does not constitute investment advice. You can lose all your capital.