US politicians, who are typically associated with stocks and bonds, are making waves in the crypto space, with one representative facing scrutiny over substantial investments made just before the SEC’s recent approval of the first US Bitcoin ETF.
The move has sparked speculation about the possibility of an Ethereum ETF being approved soon.
Representative Michael Collins, known for his traditional investment focus, made a significant $65,000 investment in Ethereum (ETH), the world’s second-largest crypto.
This investment was made strategically between January 3 and January 8, just before the SEC approved the first US Bitcoin ETF on January 10.
Collins’ Ethereum holdings have now totaled $75,000, which includes purchases made in 2023. Notably, the value of Ethereum has increased by 59% since his initial investment, with a significant 16% increase in the last week alone. This upward trend has propelled Ethereum’s price above $2,600.
Collins’ crypto investment coincided with the SEC’s decision on the Bitcoin ETF, sparking speculation about potential insider trading.
While the debate over politicians and crypto investments is not new, the impact on the broader crypto market remains unknown.
As the dust settles on the Bitcoin ETF approval, the focus has shifted to the possibility of an Ethereum ETF. Bloomberg ETF analyst Eric Balchunas has weighed in, suggesting that the SEC’s favorable attitude toward Bitcoin ETFs could pave the way for Ethereum ETF approvals later this year.
Balchunas believes an Ethereum ETF will be approved by May, citing the close price correlation between Ether and Bitcoin as a key factor.