Wed. May 22nd, 2024
Ethereum technical analysis
  • TD Cowen and JPMorgan predict it could take up to 26 months for the SEC to approve an Ethereum ETF.
  • Both firms believe the SEC will want to gain experience with Bitcoin ETPs before approving Ethereum or other crypto token ETPs.
  • JP Morgan’s Nikolaos Panigirtzoglou doesn’t see Ethereum being classified as a commodity anytime soon.

TD Cowen’s Outlook on Ethereum ETF Approval

TD Cowen, a leading American multinational investment bank, has cast doubt on the likelihood of an Ethereum ETF approval in the near future. The TD Cowen Washington Research Group, led by Jaret Seiberg, believes the SEC will prioritize gaining experience with Bitcoin ETPs before moving on to Ethereum or other crypto token ETPs.

In a recent report, the Group stated, “Our expectation is that the agency will not be approving ETPs for other crypto tokens any time soon as we believe the SEC will want to gain experience from Bitcoin ETPs before it approves an Ethereum or other crypto token ETP.”

JPMorgan’s Perspective on Ethereum ETF Approval Delay

JPMorgan, another prominent financial institution, shares TD Cowen’s cautious stance on Ethereum ETF approval. Nikolaos Panigirtzoglou, a Managing Director at JPMorgan, believes that an Ethereum ETF is unlikely to be approved in May, as the SEC would need to classify Ethereum as a commodity (similar to bitcoin) rather than a security, a step he doesn’t foresee happening soon.

Potential Reasons for Delay

The SEC’s decision to approve the first set of spot Bitcoin ETFs earlier this week has not dampened the skepticism surrounding Ethereum ETF approval. Experts point to several factors that could contribute to a longer wait:

  • Regulatory Uncertainty: The SEC’s stance on classifying Ethereum as a commodity or security remains unclear, adding to regulatory uncertainty.
  • Market Volatility: The volatility of the cryptocurrency market could make the SEC hesitant to approve an ETF that could potentially amplify market swings.
  • Learning Curve: The SEC may want to gain more experience with Bitcoin ETPs before expanding its oversight to other crypto assets.

Conclusion

While the approval of spot Bitcoin ETFs marks a significant step forward for the cryptocurrency space, investors should remain patient regarding an Ethereum ETF. Experts believe that the SEC’s cautious approach could prolong the wait for an Ethereum ETF approval, potentially extending beyond the next 26 months.

By Julia

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