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JPMorgan predicts that the newly approved ethereum exchange-traded funds (ETFs) will likely begin trading before the November US presidential election, citing the growing political importance of cryptocurrencies.
This outlook follows the US Securities and Exchange Commission's (SEC) unexpected approval of eight ethereum spot ETFs on May 23, marking a notable shift from previous skepticism around these financial instruments.
The SEC approved Forms 19b-4 for ethereum ETFs, which include offerings from VanEck, BlackRock, Grayscale, and Fidelity. However, these products still require activation of their S-1 registration statements before marketing can begin.
JPMorgan emphasized this development, stating:
“Issuers' registration statements continue to be reviewed by the SEC. As such, there is no expected date for these ETFs to begin trading.”
While Galaxy analysts expect trading to begin in July or August, JPMorgan maintains a more cautious stance. They believe political factors related to ETF approval and cryptocurrency regulation could influence the timeline. They noted:
“We note that this important step yesterday toward final approval comes after a sudden shift in regulatory sentiment earlier this week, when the SEC appeared to reengage with stakeholders after months of stalled talks.”
This outlook aligns with recent major political and regulatory developments in the crypto industry.
Last week, the House passed FIT21, a major legislative effort to clarify the SEC's role in regulating cryptocurrencies. Additionally, President Joe Biden expressed his willingness to cooperate with Congress to establish a comprehensive and balanced regulatory framework for digital assets.
Additionally, former President Donald Trump announced that he would accept cryptocurrencies for campaign donations.
These events, combined with both chambers of Congress voting to repeal a cryptocurrency-related SEC rule despite President Biden's veto threat, indicate a major step toward widespread acceptance of cryptocurrency as a financial asset.
The post JPMorgan Sees ethereum ETFs to Trade Ahead of 2024 Election Amid Political Gains appeared first on CryptoSlate.
