The upcoming European Union elections this week are poised to play a crucial role in shaping crypto regulations and potentially approving spot Ether (ETH) exchange-traded funds (ETFs).
Scheduled from June 6 to June 9, the EU parliamentary elections could be a game-changer for the future of crypto regulations, says Jag Kooner, head of derivatives at Bitfinex.
Kooner stated to Cointelegraph that right-wing parties may see an increase in influence during the 2024 elections in the EU, which could impact the crypto industry. Marina Markezic, co-founder and executive director of the European Crypto Initiative (EUCI), mentioned that the rise of right-wing parties could mean more protective measures for cryptocurrencies. However, they could also be potential allies for introducing crypto regulations that are beneficial for innovation.
The outcome of the elections may also affect the implementation of the Markets in Crypto-Assets (MiCA) bill, the EU’s first comprehensive regulatory framework for cryptocurrencies, which is set to come into full effect in December 2024.
Despite the possibility of stricter regulatory policies, spot Ether (ETH) ETFs are gaining traction among financial institutions in Europe following the approval of 19b-4 filings for eight spot Ether ETF issuers by the United States Securities and Exchange Commission on May 23. This decision has boosted confidence in European financial institutions regarding Ether ETFs.
According to Kooner from Bitfinex, some of Europe’s major banks are entering the crypto space due to the clarity offered by the MiCA bill. In April, Germany’s largest federal bank, Landesbank Baden-Württemberg (LBBW), announced plans to provide crypto custody services to institutional clients. Additionally, Raiffeisen, the largest community banking group in Austria, partnered with Bitpanda to offer digital asset services to retail banking customers at the end of April.
EU elections could lead to the first Ether ETF acting as a wildcard in the market