- Currently, the SEC is obligated to make its final decision on approving or rejecting the Ethereum Spot ETF between May 23 and August 7, 2024.
- TD Cowen’s predictions align with the SEC’s generally cautious approach to investment products related to crypto.
- Scott Melker, a crypto investor, highlighted the possibility of the SEC hesitating to approve Ethereum Spot ETFs via X (formerly Twitter).
American investment bank and financial services firm TD Cowen expects a delay in spot Ethereum ETFs.
Possible Delays in Spot Ethereum ETFs
Despite the SEC’s approval of Spot Bitcoin ETFs, a leading American investment bank and financial services firm, TD Cowen, anticipates potential delays in the approval process of Ethereum Spot ETFs.
Boldly making a prediction as the investment banking and financial services arm of TD Securities, TD Cowen foresees that the SEC is unlikely to approve Ethereum Spot ETFs. Currently, the SEC is obligated to make its final decision on approving or rejecting the Ethereum Spot ETF between May 23 and August 7, 2024.
When the SEC officially approved Spot Bitcoin ETFs on January 10, it triggered expectations that ETH Spot ETFs would be approved similarly. Several major firms, including Ark 21 Shares, VanEck, Fidelity, BlackRock, and Hashdex, have applied for an Ethereum Spot ETF. Additionally, the regulatory body has set a new deadline for Grayscale’s Ethereum Spot ETF: January 25.
TD Cowen’s predictions align with the SEC’s generally cautious approach to investment products related to crypto. The investment bank suggested that the regulatory authority might postpone approving ETH Spot ETFs until sufficient information and experience have been accumulated from previously approved Bitcoin Spot ETFs. While the delay is not expected to exceed 26 months, the bank predicts the possibility of extending beyond the upcoming elections.
Similarly, Scott Melker, a crypto investor, highlighted the possibility of the SEC hesitating to approve Ethereum Spot ETFs via X (formerly Twitter). Melker predicted that without external legal pressures observed during the approval process of Spot Bitcoin ETFs, SEC might be reluctant to approve Ethereum ETFs.
Melker stated, “Gary Gensler won’t approve an Ethereum Spot ETF unless courts force him. I have serious doubts we will see one anytime soon, but would love to be wrong.”
Pre-Approval Classification
Adding another layer of complexity to the approval process of Ethereum Spot ETFs is JP Morgan, an American multinational financial services company. JP Morgan’s Managing Director Nikolaos Panigirtzoglou stated that the chances of the SEC approving these Spot ETFs by the end of May are 50%. Panigirtzoglou emphasized that the SEC would need to classify Ethereum as a commodity, similar to Bitcoin, before officially granting authority for Spot Ethereum ETFs.
However, Bloomberg analyst Eric Balchunas is more optimistic about the approval of Ethereum Spot ETFs. The analyst disclosed a 70% probability of the SEC approving ETH Spot ETFs. Balchunas had previously stated that he could not envision a scenario where the SEC would approve Spot Bitcoin ETFs and reject Ethereum Spot Bitcoin ETFs.
