SEC’s Cautious Approach Will Lead to a Delay in Ethereum ETF Decision
The U.S. Securities and Exchange Commission (SEC) is unlikely to approve spot Ethereum exchange-traded funds (ETFs) soon, according to TD Cowen.
The SEC is expected to gain experience from Bitcoin ETFs before considering Ethereum. The initial deadline for approval is in May.
TD Cowen’s analysis suggests a cautious approach from the SEC, with expectations of a post-election decision, despite the waiting period possibly being shorter than previous instances.
While the recent approval of spot Bitcoin ETFs has raised hopes for spot Ethereum ETFs, JPMorgan remains skeptical. They argue that Ethereum’s classification as a commodity, not a security, is crucial for SEC approval in May.
Major firms like BlackRock and Fidelity have filed for spot Ethereum ETFs, reflecting growing interest. However, the SEC, under Chair Gary Gensler, remains cautious, emphasizing that Bitcoin ETF approval doesn’t signify an endorsement.
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TD Cowen sees Gensler’s approach as deliberate, akin to the careful establishment of rules for the asset-backed securities market. The bank underscores the necessity of comprehensive legislation from Congress for crypto market structure.
Gensler’s term until June 2026 offers flexibility for enforcement actions and awaiting court rulings, rather than rushing legislative action. This approach allows the U.S. to observe and learn from global counterparts before implementing a potentially challenging-to-amend regulatory framework.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
