Amidst the anticipation surrounding the launch of a spot Ethereum ETF, TD Cowen’s financial analysts have stated that they believe the SEC will not review applications for approval of the investment vehicle until the first half of 2024.
“While the tentative approval deadline for spot ETF applications for Ether is May, we don’t expect the regulator to approve new ETPs for ether and other cryptocurrencies anytime soon. It is likely that the SEC will want to gain practical experience with similar Bitcoin investment vehicles before giving the green light to an Ethereum ETP,” commented Jaret Seiberg, head of TD Cowen Washington Research Group.
TD Cowen predicts that the SEC will readdress the topic of Ethereum ETFs after the US presidential elections in November 2024.
JP Morgan senior analyst Nikolaos Panagirtzoglou also stated that the investment bank does not anticipate the approval of spot Ethereum ETFs in May. According to Panagirtzoglou, for the SEC to make a decision, ether needs to be classified as a commodity rather than a security. However, JP Morgan believes this is unlikely to happen in the near future.