SEC To Delay Approval Of Spot Ethereum ETFs, TD Cowen Forecasts


The Securities and Exchange Commission (SEC) is expected to delay the approval of spot Ethereum exchange-traded funds (ETFs), according to investment bank TD Cowen. The prediction comes as the SEC is anticipated to first gather insights from Bitcoin ETFs before moving on to Ethereum or other digital tokens.

TD Cowen’s Washington Research Group, led by Jaret Seiberg, stated that they believe the SEC will want to gain experience from Bitcoin ETFs before approving an Ethereum or other crypto token ETF. They also mentioned that the delay might not be as long as 26 months, but it is likely to occur after the election.

This development follows over a decade of rejections by the SEC for spot Bitcoin ETFs. However, the agency recently approved spot Bitcoin ETFs, leading traders to speculate if spot Ethereum ETFs could be the next in line. Nonetheless, some financial institutions, including JPMorgan, have expressed reservations, arguing that the SEC would first need to categorize Ethereum as a commodity, similar to Bitcoin, rather than a security.

It is worth noting that major corporations like BlackRock and Fidelity have already submitted applications for spot Ethereum ETFs, signaling a growing interest in this digital asset.

TD Cowen interprets the SEC’s approval of Bitcoin ETFs as consistent with SEC Chair Gary Gensler’s cautious and measured approach towards crypto regulation. This delay in approving spot Ethereum ETFs aligns with Gensler’s stance on crypto regulation, indicating that the SEC wants to proceed with caution and gather more information before expanding ETF offerings beyond Bitcoin.

The approval of spot Ethereum ETFs holds significant importance for the crypto market. It would provide investors with an opportunity to gain exposure to Ethereum without directly holding the digital asset. ETFs are widely regarded as a more accessible and regulated investment vehicle for traditional investors. Therefore, the launch of spot Ethereum ETFs could attract a new wave of institutional and retail investors into the crypto market.

In conclusion, TD Cowen predicts that the SEC will delay the approval of spot Ethereum ETFs, citing the agency’s cautious approach and the need to gain experience from Bitcoin ETFs first. While major corporations have shown interest in spot Ethereum ETFs, the SEC’s decision will be crucial in determining the future growth and acceptance of Ethereum as an investment asset.

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