It is an unusual letter, as it does not seem to be the work of the senators. According to the experts, there are references to technical issues that US senators could hardly handle with such confidence.
A curious letter presumably sent by two US senators to Gary Gensler against Ethereum ETFs causes surprise.
A letter was sent to Gary Gensler, signed by two senators from the United States of America, which refers to Bitcoin ETFs and any other possible ETFs that emerge in the future.
Two senators from the United States of America sent a letter to Gary Gensler who is known to lead SEC, challenging some alleged irregularities in the ETF offering note on BTC. However, this is not the most interesting part of the letter.
In fact, there is a frontal attack on what could happen in the coming weeks: the possibility of approving an ETF also on Ethereum. So far nothing strange: it is known that at least on one side in American politics, cryptocurrencies must be opposed at all possible levels.
The reasons included in the letter would seem to be a little above the knowledge of the markets that can be assumed from senators who – presumably – deal with something else.
“We do not believe other cryptocurrencies have the same trading volumes or integrity to support ETPs. And we do not believe that futures markets for other cryptocurrencies show a close correlation with spot markets, which would allow for meaningful surveillance of the same markets and be able to counter fraudulent traders.”
Don’t Use Bitcoin as Precedent
The first request is not to use what happened with Bitcoin ETFs as a precedent for future approvals. The issue is complicated, but deserves further investigation: Bitcoin ETFs were approved after US courts forced them to do so, given that there is a significant correlation between the performance of futures markets (particularly those of the Chicago CME, a market more than the regulated stock exchange) and markets places that is, those where Bitcoin is bought and sold directly.
Correlation between ETH Futures and ETH Spots
The issue of correlation between these two markets has been decisive in reaching the approval of the Bitcoin ETF. And it is at this point that SECOND will try to make the barricades. And so far nothing new, given that a few days ago there was a meeting between Coinbase and the SEC itself to discuss this issue.
The curious thing is that two senators who probably do not have such a deep knowledge of the world take up the issue. markets. Hence the theory that seems to be shared by specialists in the ETF world.
A Letter Written by Others?
The suspicion, apparently well founded, is that the letter was actually written by other people, specifically by someone from the SEC, given the perfect agreement of the arguments used by the senators themselves and by the SEC.
This cannot be certain, although there are several clues. In any case, the answers are already beginning to arrive; for example, Paul Grewal of Coinbase, who obviously has an interest in seeing Ethereum ETFs approved.
Yesterday, Grewal took on X to post lengthy notes, the first of which is the following:
“Respectfully Senators, the evidence points exactly the opposite way. We have discussed our analysis with SEC staff and would be happy to do the same for you and any other policy makers who have questions.”
By Leonardo Perez
