Much has been made about the surprising approval of spot Ethereum ETFs by the SEC, with speculation that changing political sentiments may have influenced the decision.

Bitwise Asset Management executive Katherine Dowling believes politics played a role in the SEC's approval of these new products. "I was completely caught off guard," Dowling said at the Consensus crypto conference on Thursday. "Why did it change? Politics—it suddenly has become a campaign issue."

### Crypto's Potential Role in Upcoming Election

When spot Ethereum ETF applications were approved last week, some issuers were surprised, as market watchers had expected the SEC to deny them. There is widespread speculation that the upcoming elections and President Joe Biden's desire to appear more open to crypto influenced the approval.

Signs indicate that crypto will play a larger role in the upcoming U.S. presidential election. Trump, historically skeptical of crypto, has recently shown a more favorable stance toward digital assets.

Regarding spot Ethereum ETFs, the 19b-4 forms have been approved so far. Before trading can begin, issuers like Bitwise, BlackRock, and Fidelity must file S-1 forms with the SEC. Analysts expect the S-1 phase could take a few weeks or months to resolve.