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- 1 TD Cowen said that after the approval of Bitcoin ETFs, it is possible to experience a delay in Ethereum ETFs.
- 2 The wait will be shorter than it was for BTC ETF; the scheduled date for approval is May 2024.
- 3 The spot ETF in Bitcoin, Ethereum, and other cryptocurrencies can impact the presidential election scheduled for 2024.
TD Cowen Washington Research Group, managed by Jaret Seiberg, expressed its view on the approval of the ETH ETF earlier this week. The board said that they do not expect the SEC to approve ETFs for other crypto tokens anytime soon. The agency will try to gain experience and exposure from the BTC ETFs of various applicants.
The Ethereum ETFs
The spot Ethereum Exchange-traded funds (ETFs) have gained excess popularity after the approval of Bitcoin ETFs on January 10, 2024. It took 26 months for Bitcoins to get ETF approval from all the major applicants, including asset management companies.
The spot bitcoin ETF got approval after a decade of rejections and after allowing bitcoin futures ETFs in October 2021. Traders are betting high on the spot Ethereum ETF for being the next in line to receive the green signal. The traders’ sentiments can be observed through the sudden spike in the prices of Ethereum last week after the listing of BTC ETFs.
The analysts are optimistic about spot ETH ETFs and say that they will also get approval by May 2024 as per the schedule and will not experience an extended delay. BTC ETF sets the stage for ETFs with other cryptocurrencies as underlying.
Some analysts who are not very sure about the potential of spot ETF are neither supporting Bitcoin nor will support Ethereum. The list includes analysts from top investment banking firms like J.P. Morgan and Goldman Sachs.
Ethereum ETFs are expected to face Regulatory Hurdles
One of the most popular reasons for the delay in the approval of the ETH ETF is regulatory hurdles. Ethereum is often compared with Bitcoin, both of which are major blue-chip crypto projects. However, ETH will face more regulatory hurdles and will be more complex to get approval.
ETHUSD is the underlying crypto asset for the Ethereum system’s security. A financial product has so many things to be adopted from its underlying and there are more uncertainties involved.
Preston Byrne a partner at Brown Rudnick, also made a note that there are many roadblocks to the approval of spot Ethereum ETF. As of now, only American regulators have asserted ETG as a security.
Views of Gary Gensler
After the approval of BTC ETF said that they did not have a choice to choose apart from voting for approval but he is not very sure of the regulatory challenges it can bring ahead. He emphasises his views that most crypto assets are investment contracts and hence are subject to securities law.
Besides, Ethereum will follow Gensler’s advice of a go-slow approach modeled on how the agency has established rules for the asset-backed securities market.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
