The upcoming elections in the European Union this week have the potential to significantly impact crypto regulations and the approval of spot Ether (ETH) exchange-traded funds (ETFs). According to Jag Kooner, head of derivatives at Bitfinex, these parliamentary elections could be a crucial moment for shaping future crypto regulations.
Kooner stated that the outcome of the elections could serve as a “wildcard” for the crypto industry. Right-wing parties are expected to gain more ground in the European Union during the 2024 elections. This could lead to the introduction of protective measures for the crypto industry. However, right-wing political parties could also be allies for innovation-friendly crypto regulations.
The results of the elections could also influence the implementation of the Markets in Crypto-Assets (MiCA) bill, the first comprehensive regulatory framework for cryptocurrencies in the EU. MiCA is set to take effect in December 2024.
Despite the potential for more conservative crypto regulatory policies, spot Ether (ETH) ETFs are gaining traction with financial institutions in Europe. This comes after the United States Securities and Exchange Commission approved the 19b-4 filings for eight spot Ether ETF issuers on May 23. The approval allows these ETFs to be listed and traded on their respective exchanges.
The decision by the SEC has also increased confidence in European financial institutions regarding Ether ETFs. Kooner noted that some of Europe’s largest banks are entering the crypto space due to the clarity provided by the MiCA bill. For instance, Germany’s largest federal bank, Landesbank Baden-Württemberg (LBBW), announced in April that it will offer crypto custody services to institutional clients. Additionally, Raiffeisen, Austria’s largest community banking group, partnered with Bitpanda to offer digital asset services to retail banking customers.
In summary, the upcoming EU elections have the potential to shape the future of crypto regulations and influence the approval of spot Ether ETFs. While right-wing parties may introduce protective measures for the crypto industry, they could also support innovation-friendly regulations. Furthermore, the implementation of the MiCA bill and the approval of Ether ETFs are expected to have a significant impact on the European crypto market.