Politics, Money, A Win For Ethereum ETFs: Ric Edelman

Politics, Money, A Win For Ethereum ETFs: Ric Edelman

The upcoming election played a role in regulators removing a key hurdle, the author/investor says.

Jeff_Benjamin
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Wealth Management Editor
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Reviewed by: etf.com Staff
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Edited by: Ron Day


 

What role did the upcoming elections, and political money, play in the unexpected win of Ethereum ETFs last week?

Ric Edelman, founder of the Digital Assets Council of Financial Professionals, watched the process and shares his thoughts on how politics forced the hand of regulators, and also breaks down the next steps for Ethereum ETF.

"The whole process has been very frustrating for the crypto community, and it reflects complete dysfunction by the SEC and the White House," Edelman told etf.com Wealth Management Editor Jeff Benjamin. "The word that’s going around is that there has been political pressure on the SEC."

Edelman, whose latest book is "The Truth About Crypto," is a member of the etf.com editorial advisory board.

According to an etf.com article last week, the rapid turnaround in sentiment that led to a big win for spot Ethereum ETFs may be tied to Democrats’ worries that recent crypto support from the Trump campaign will cost them votes.

Spot Ethereum ETFs

Meanwhile, analysts say the spot ether funds may begin trading anywhere from two to 12 weeks after the SEC yesterday approved a rule change for the Nasdaq, NYSE and other exchanges that would permit the new funds to trade.

The presumed Republican presidential nominee’s campaign this week began accepting cryptocurrency donations, reversing what had been Trump’s skepticism toward digital money and Trump talked of building a “crypto army” in recent speeches. Democrats began to fear they’d lose pro-crypto voters, and opposition to Ethereum ETFs began to melt, according to interviews.

Analysts generally expect massive inflows into the spot Ethereum exchange-traded funds. Standard Chartered Bank, in a note last week to clients, predicted inflows of $15 billion to $45 billion in the first 12 months of trading, rivaling flows of spot bitcoin ETFs. 

Ethereum's rapid price gains leading up to last week's SEC decision have slowed.

Jeff Benjamin is the wealth management editor at etf.com, responsible for coverage related to the financial planning industry. This includes writing, hosting podcasts, webinars, video interviews and presenting at in-person events.


Jeff is a veteran journalist with more than 30 years’ experience covering the financial markets. He has won more than two dozen national and regional awards for his reporting. He most recently worked as a senior columnist at InvestmentNews where he wrote about investment products and strategies, as well as the broader financial planning industry. Prior to that, Jeff worked as an analyst at Cerulli Associates where he researched and wrote reports on the alternative investments industry. Jeff also worked as a money management reporter at Dow Jones Newswires, where he covered the mutual fund industry.


Based in North Carolina, Jeff is a former Marine and has a bachelor’s degree in journalism from Central Michigan University.