Bitwise suggests Trump was the only one aware spot ether ETFs would be approved

Much has been made about the surprising turn of events that led to spot Ethereum ETH +1.47% ETFs gaining initial approval from the Securities and Exchange Commission and how shifting political sentiments may have played a factor.

But Bitwise Asset Management executive Katherine Dowling said there may have been one person who knew the approvals were coming down the pike.

“There may have been one person who knew, Trump," Dowling said on Thursday during a panel at the Consensus crypto conference. "I think Trump knew we were getting those approval orders and he might have very well been the only person who knew cause we didn’t.”

Trump's team did not immediately respond to a request for comment.

Dowling, who serves as Bitwise's general counsel and CCO, made her comments during a panel on spot bitcoin and ether ETFs. The executive, who said she was "caught off guard" when the SEC approved the new financial products, was joined on stage by representatives from BlackRock and Fidelity.

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Crypto's potential role in upcoming election

When applications for spot Ethereum ETFs gained approval last week, some would-be issuers were caught by surprise, as market watchers had expected the SEC to deny the applications. Widespread speculation suggests the upcoming election and President Joe Biden's desire to appear less resistant to crypto helped usher in the approval.

All signs point to crypto playing a bigger than ever in this year's upcoming election, which will serve as U.S. president next year. Trump, historically skeptical of crypto, has recently adopted a friendlier stance with regard to digital assets.

In the case of spot Ethereum ETFs, so far, the 19b-4 forms are what have been approved. Before trading can begin, would-be issuers like Bitwise, BlackRock and Fidelity have to file S-1 forms with the SEC. Some analysts expect that the S-1 phase could take a few weeks or a few months to be resolved.