US Congress members urge the SEC to grant approval for Ethereum ETFs.

A bipartisan group of House lawmakers, including Majority Whip Tom Emmer and New Jersey Democrat Josh Gottheimer, is urging the SEC to approve spot Ethereum exchange-traded funds (ETFs). In a letter to SEC Chairman Gary Gensler, they argue that approving these ETFs would provide investors with safe and regulated access to cryptocurrencies. The lawmakers point to the success of Bitcoin ETFs, which offer transparency and regulation, as a positive precedent for approving other crypto ETPs, specifically spot Ethereum ETFs. They believe that these approvals would prioritize investor protection and address concerns about market manipulation. Gensler has already had discussions with Ethereum ETF issuers, signaling a potential change in the SEC’s plan. Senior ETF analyst Eric Balchunas finds it interesting that the letter mentions “other digital assets” besides Ethereum, suggesting that the ETF industry may seek to test the SEC’s limits by filing for various coins. The SEC’s decision on VanEck’s ETF is expected today, and Balchunas predicts that all the products will be approved simultaneously, similar to spot Bitcoin ETFs. The approval process involves the SEC approving the necessary forms before the S-1 registration statements can be effective and trading can begin. While the forms usually require amendments and refiling, the SEC can approve the final versions as soon as they are submitted.