The ‘wild card’ of EU elections could pave the way for the first Ether ETF
This week's elections in the European Union could be a key moment for the approval of crypto regulations and space ether (ETH) exchange-traded funds (ETFs).
The European Union will hold parliamentary elections between June 6 and June 9, which could create a “wild card” moment for shaping future crypto regulations, according to Jag Kooner, head of derivatives at Bitfinex.
Connor told Cointelegraph:
“The election may show a big change in the political environment, it is expected that the right-wing and populist parties will get a big place.” This change may affect the regulatory environment, leading to tighter controls or vice versa to more supportive policies, depending on the composition of the new parliament.
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Right-wing parties may gain more ground in the EU.
Right-wing parties are expected to gain more ground in the EU during the 2024 elections.
According to Marina Markzic, co-founder and executive director of the European Crypto Initiative (EUCI), more right-wing parties may introduce more protective measures for the crypto industry.
Markzic told Cointelegraph:
“The right-wing trend may have left its mark on the Commission's activities, including the portfolios expected by incoming commissioners, who may show more visible protectionist tendencies.”
However, many right-wing political parties could become new allies for innovation-friendly crypto regulations, Markezic added.
This political shift could lead to the crypto industry as a whole receiving anti-status rhetoric from representatives of the (far) right, providing a new and unexpected ally for crypto advocacy topics in Brussels and Strasbourg.
The result of the election may affect the future distribution markets of the Crypto-Assets (MiCA) Bill, which is the first comprehensive regulatory framework for cryptocurrencies in the European Union. The MCA is expected to be fully operational from December 2024.
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Approval of Ether ETF in Europe: One step closer with MiCA
While more conservative crypto regulatory policies are possible, Spot Ether (ETH) ETFs are joining forces with financial institutions in Europe after the United States Securities and Exchange Commission on May 23 19b-4 approved applications for eight Spot Ether ETF issuers to list and trade on their respective exchanges.
According to Bitfinex's Kooner, who told Cointelegraph, the decision has given European financial institutions confidence in the Ether ETF.
“Approvals of Ethereum ETFs in the EU are on the rise… VanEyck and Franklin Templeton have already listed their ETH ETFs on DTCC pending regulatory approval. This move sets a strong precedent for the EU, where the regulatory framework provided by the MiCA regulation could facilitate similar approvals.”
Some of Europe's biggest banks are entering the crypto space thanks to the transparency provided by the MCA bill.
Back in April, Germany's largest federal bank Landsbank Baden-Württemberg (LBBW) announced that it would offer crypto protection services to institutional clients from the second half of the year.
At the end of April, Raiffeisen, Austria's largest community bank, partnered with Bitpanda to offer digital asset services to retail banking customers.
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