Even though the United States Securities and Exchange Commission (SEC) granted approval for bitcoin spot ETFs, TD Cowen, a prominent American investment bank and financial services company, foresees possible delays in the process of approval of ethereum spot ETFs.
ethereum Spot ETF Faces Possible Delay
TD Cowen, an investment bank and financial services division of TD Securities, has made a bold forecast, predicting that the ethereum-etfs/” rel=”nofollow”>US SEC It is unlikely to approve ethereum spot ETFs before its deadline. Currently, the SEC is required to make its final decision on its rejection or acceptance of the ethereum Spot ETF from May 23 to August 7, 2024.
At the beginning of January 10, the bitcoin-etfs-approved-by-us-sec/” rel=”nofollow”>SEC Officially Approved bitcoin Spot ETFs, raising expectations that eth Spot ETFs would do the same. Several major companies, including Ark 21 Shares, VanEck, ethereum-spot-etf/” rel=”nofollow”>Fidelity, Black Rockand ethereum-etf-with-mixed-filing/” rel=”nofollow”>hashdex have submitted applications for a Spot ethereum ETF. Additionally, the regulatory agency has set a new deadline for Grayscale's ethereum Spot ETF to January 25.
TD Cowen's predictions align with the SEC's typically cautious approach toward cryptocurrency-related investment products. The investment bank has revealed that the regulator can bitcoin–ethereum-etfs-deadline/” rel=”nofollow”>delay eth spot ETFs until you accumulate sufficient knowledge and experience from your previously approved bitcoin Spot ETFs. The bank estimates that while the delay may not last as long as 26 months, it is likely to persist beyond the next election.
Similarly, Scott Melker, a crypto investor at x (formerly Twitter) has highlighted the possibility that the SEC will hesitate to approve ethereum Spot ETF. Melker predicted that the SEC would be reluctant to approve ethereum ETFs without external resources. crypto-xrp-lawyer/” rel=”nofollow”>legal pressures similar to those observed during the approval process of bitcoin Spot ETFs.
“Gary Gensler is not going to accept an ethereum spot ETF unless the courts force him to. “I highly doubt we will see one anytime soon, but I would love to be proven wrong,” Melker said.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2024/01/US-investment-bank-TD-Cowen-says-Ethereum-ETF-will-be" alt="Tradingview.com ethereum Price Chart” width=”3266″ height=”1530″ loading=”lazy”/>
eth price recovers above $2,500 | Source: ETHUSD on Tradingview.com
Class before approval
bitcoin-etf/” rel=”nofollow”>J.Morgan, an American multinational financial services company has introduced another layer of complexity to the approval process for ethereum spot ETFs. JP Morgan CEO Nikolaos Panigirtzoglou ethereum-etf-approval-chance-jpmorgan” rel=”nofollow”>fixed that there was a 50% chance that the US SEC would approve these spot ETFs before their May deadline.
Panigirtzoglou revealed that the SEC would need to classify eth as a commodity, similar to bitcoin, before it could officially grant authorization for Spot ethereum ETFs.
In contrast, Bloomberg senior analyst Eric Balchunas is more bullish on ethereum spot ETF approvals. The analyst has revealed a 70% chance that ethereum-etf-filings-await-sec-green-light/” rel=”nofollow”>SECOND approve eth spot ETFs. Balchunas previously said that he could not imagine a scenario in which the SEC approved bitcoin spot ETFs and rejected ethereum spot bitcoin ETFs.
Featured image by tech Cabal, chart by Tradingview.com
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