The EU elections ‘wildcard’ could pave the way for Ether ETFs
The results of the elections will be critical to the implementation of the MiCA regulatory framework and the approval of the first spot Ether ETF.
The impending European Union elections this week could be a watershed moment for cryptocurrency laws and the approval of spot Ether (ETH) exchange-traded funds. The European Union will hold parliamentary elections from June 6 to June 9, which Jag Kooner, head of derivatives at Bitfinex, believes could be a “wildcard” moment in setting future crypto legislation.
Kooner told Cointelegraph: It is expected that right-wing and populist parties will gain substantial ground in the upcoming elections. The composition of the new parliament could influence regulatory policy, leading to more stringent controls or, conversely, more supportive policies.”
Right-wing parties could gain more ground in the EU
Right-wing parties are projected to gain ground in the European Union’s 2024 elections. According to Marina Markezic, co-founder and executive director of the European Crypto Initiative (EUCI), more right-wing parties may enact more safeguards for the cryptocurrency business.
Markezic told Cointelegraph: “The right-wing trend will likely leave its mark on the Commission’s activities, including the expected portfolios of the upcoming Commissioners, which might present more visible protectionist tendencies.” Markezic suggests that right-wing political parties may become allies in advocating for innovative crypto regulations. “This political shift might lead to the adoption of the generally counter-status quo rhetoric of the crypto industry by representatives from the (far) right, presenting a new and unexpected ally for the crypto advocacy topics in Brussels and Strasbourg.” The election results could also have an impact on the future implementation of the Markets in Crypto-Assets (MiCA) bill, the EU’s first complete regulatory framework for cryptocurrencies. MiCA is planned to enter full effect in December 2024.
Ether ETF approval in Europe: One step closer with MiCA
On May 23, the US Securities and Exchange Commission approved the 19b-4 filings for eight spot Ether ETF issuers, allowing them to be listed and traded on their respective exchanges. Despite the possibility of more conservative crypto regulatory policies, spot Ether $3,770 ETFs are gaining popularity among European financial institutions.
Bitfinex’s Kooner told Cointelegraph that the introduction of Ethereum ETFs in the EU has increased confidence among European financial institutions. VanEck and Franklin Templeton have already listed their ETH ETFs on the DTCC in preparation for regulatory approval. This decision establishes a significant precedent for the EU, where the regulatory structure provided by the MiCA law may assist similar approvals.”
The MiCA bill’s clarity has prompted some of Europe’s major banks to enter the cryptocurrency market. Back in April, Germany’s largest federal bank, Landesbank Baden-Württemberg (LBBW), stated that it would begin offering crypto custody services to institutional clients in the second half of the year. Raiffeisen, Austria’s largest community banking group, teamed with Bitpanda in late April to provide digital asset services to retail banking customers.