Bitwise Asset Management executive Katherine Dowling suggested that former President Donald Trump might be the only person who knew spot Ethereum ETFs would get initial approval from the Securities and Exchange Commission (SEC).
During a panel discussion at the Consensus cryptocurrency conference, Dowling said, “Trump may have been the only person who knew about it. I think Trump knew that we were going to get these confirmation orders, and he might have been the only person who knew about it because we didn’t know.” said.
Dowling, who serves as Bitwise’s general counsel and Chief Compliance Officer, made the comments while discussing spot Bitcoin and Ethereum ETFs. He admitted that he was “caught off guard” by the SEC’s approval of new financial products.
The approval of applications for spot Ethereum ETFs last week surprised many market participants, as there was an expectation that the SEC would reject these applications. Speculation is rife that changing political trends played a role in the SEC’s decision, particularly President Joe Biden’s desire to appear more crypto-friendly ahead of the upcoming election.
Cryptocurrencies are expected to be a major issue in this year’s elections. Trump, who has historically been skeptical of digital assets, has recently taken a more supportive stance towards crypto.
Currently, the SEC has approved forms 19b-4 for spot Ethereum ETFs. However, before trading can begin, issuers such as Bitwise, BlackRock, and Fidelity must file S-1 forms with the SEC. Analysts estimate that the S-1 phase could take several weeks or months to resolve.
*This is not investment advice.