House lawmakers send letter to Gary Gensler urging SEC to approve spot Ethereum ETFs

US lawmakers are imploring the SEC to approve spot Ethereum ETFs.

In anticipation of an forthcoming decision on a spot Ethereum ETF, a bipartisan group of House lawmakers, including Majority Whip Tom Emmer and New Jersey Democrat Josh Gottheimer, have sent a letter to SEC Chair Gary Gensler urging the commission to approve spot Ethereum ETFs and other digital assets. This would provide investors with regulated, transparent, and safe access to cryptocurrency.

JUST IN: 🇺🇸 US lawmakers urge SEC to approve spot Ethereum ETFs, Politico reports.

— Watcher.Guru (@WatcherGuru) May 23, 2024

“We urge the commission to maintain a consistent and equitable approach when reviewing upcoming applications for other digital asset-backed ETPs,” the letter read.

Legislative impact and Solana ETF

Recent legislative measures, such as the approval of the Financial Innovation and Technology for the 21st Century Act (FIT21), could expedite the ETF approval process. Despite Gensler’s public opposition to FIT21, the legislative push signals a growing support for regulated digital asset investment products. 

The lawmakers’ letter also mentioned “other digital assets” alongside Etherehum, suggesting the possibility for other cryptocurrencies to apply for spot ETFs.  

It is interesting to me that they say "other digital assets" vs only mentioning Ether. Will be interesting to see how far and how quickly the ETF industry pushes envelope (which is something its good at). Wouldn't be surprised if they pounce on SEC vulnerability and file all…

— Eric Balchunas (@EricBalchunas) May 23, 2024

Certain analysts believe that Solana (SOL) could be next in line for an ETF if Ethereum’s is approved. A spot Solana ETF would likely attract substantial demand, second only to Bitcoin (BTC) and Ethereum (ETH).

Earlier this year, a Bitcoin ETF increased attention and investment for a spot Ethereum ETF. 

Spot Ethereum ETF implications

The impending spot Ethereum ETF decision has created a buzz around the crypto community. Some analysts project that an ETF approval would boost the price of ETH by 60%, per QCP capital.

Key players such as BlackRock Inc. and five other issuers — Fidelity, VanEck, Invesco/Galaxy, Ark Invest, and Franklin Templeton — have recently amended their ETF filings with the Securities and Exchange Commission (SEC) in anticipation of ETF approval. 

If an Ethereum spot ETF is denied, it could lead to lawsuits, mirroring the reaction following the initial rejections of spot Bitcoin ETFs. 

The SEC’s decision is expected to be announced around 4:00 p.m. EST on Thursday