Jake Chervinsky, CLO of Variant Fund, expressed surprise at the potential approval of Ethereum ETFs, stating, “If Ethereum ETFs are approved, it will shock all my contacts close to the process in the capital.”

According to Bloomberg analysts, the SEC’s changing stance on Ethereum ETFs has significantly increased their approval likelihood from 25% to 75%.

Last week, the US Senate voted to reject the SEC’s SAB 121, a bulletin that made it difficult for financial institutions to provide custodial services for cryptocurrencies. It is expected that Joe Biden will veto this rejection.

Chervinsky noted, “The approval of ETFs could signify a major shift in US crypto policy following the SAB 121 vote, which might be even more significant than the ETF approval itself.”

Haseeb Qureshi, a partner at Dragonfly, believes Biden is softening his cryptocurrency policy ahead of this year’s presidential elections.

Haseeb stated, “[Biden] doesn’t want to lose votes in a tight race over a minor issue. ETFs are the first signal— I think in the coming months, we’ll see other institutions also starting to soften their stance.”

This potential policy shift could mark a significant change in the US government’s approach to cryptocurrencies, indicating a more favorable environment for the digital asset market.

The post Is the Biden Administration Shifting Its Stance on Cryptocurrency? appeared first on Coin Engineer.

Chervinsky’s remarks come at a time of intense activity within the cryptocurrency markets, where the introduction of an Ethereum ETF is anticipated to further invigorate trading dynamics.

He highlighted the contentious aftermath following the SEC’s green light for Bitcoin (BTC) ETFs, stressing that the approval was largely influenced by judicial pressures and stirred significant debate within regulatory circles.

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While the prevailing market sentiment is largely characterized by fervent speculation, Chervinsky cautioned that the introduction of an ETH ETF could exacerbate this trend, as emotions often dictate market fluctuations, leading to periods of heightened buying or selling activity.

Chervinsky suggested that the SEC may employ legal arguments to justify the denial of an ETH ETF, even if such justifications lack substantive merit. He pointed to the SEC’s track record of championing contentious legal stances in pursuit of broader regulatory objectives.

Despite Blackrock’s historical success in securing ETF approvals, Chervinsky insinuated that this achievement was not solely attributable to the firm’s prowess but also owed to its collaborative rapport with the SEC. He speculated that if prompted, Blackrock and other ETH ETF sponsors might opt to withdraw their applications in response to regulatory overtures.

Notwithstanding his reservations regarding the immediate timeline, Chervinsky remained optimistic about the eventual approval of an ETH ETF, emphasizing that it is more a matter of “when” rather than “if.”

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