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- TD Cowen has provided a clearer timeline for when a spot Ethereum exchange-traded fund (ETF) might be approved in the United States.
 
- The bank stated that if Gensler takes a different approach, such as becoming the Treasury Secretary in the event of President Joe Biden winning a second term, he will still need progressive support.
 
- Last week, the SEC once again postponed Grayscale Investments’ proposal for a spot Ethereum ETF, following delays in other applications earlier this month.
 
American bank TD Cowen has unveiled its predictions regarding the approval of spot Ethereum ETF applications.
TD Cowen Releases Spot Ethereum ETF Report

Investment bank TD Cowen has provided a clearer timeline for when a spot Ethereum exchange-traded fund (ETF) might be approved in the United States: the end of 2025 or the beginning of 2026. Earlier this month, the bank stated that approval might come after the November 2024 elections.
The TD Cowen Washington Research Group, led by Jaret Seiberg, said: “We do not expect the SEC to approve a spot Ethereum ETF in 2024. This is a political decision. As angry as progressive Democrats are with SEC Chairman Gary Gensler for approving a spot Bitcoin ETF earlier this month, we do not see approving a spot Ethereum ETF as an advantage for SEC Chairman Gary Gensler.”
  
  
    
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According to TD Cowen, Gensler needs progressive support to advance his agenda in an election year. Additionally, if Gensler takes a different role, such as becoming the Treasury Secretary in the event of President Joe Biden winning a second term, he will still need progressive support, said the bank.
Therefore, TD Cowen states that “there is no reason to start an unnecessary fight.” The note also included the following statement: “Our view is that Gensler would want more experience with newly approved spot Bitcoin ETFs’ performance first. This is consistent with his overall approach to crypto, which is to proceed step by step and move slowly in providing regulatory approval or clarity.”
  
  
    
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Spot Ethereum ETF Applications
About half a dozen companies, including BlackRock and Fidelity, have applied for a spot Ethereum ETF. Last week, the SEC once again postponed Grayscale Investments’ proposal for a spot Ethereum ETF, following delays in other applications earlier this month.
According to TD Cowen, the SEC might take its time to review spot Ethereum ETF applications. The bank stated, “Ultimately, it could reject the rule change, leading to a new application or legal process. Both will take a year or two until they play out.”
  
  
    
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The expected approval timeframe of the end of 2025 or the beginning of 2026 is possible even if Congress fails to pass a broader crypto market structure law in 2025, TD Cowen said. Gensler’s term ends in June 2026.
Crypto experts have been both optimistic and pessimistic about the prospect of a spot ether ETF approval. Some believe such approval could come as early as May – the earliest date for the approval of such funds.
  
  
    
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