American Investment Bank TD Cowen Says Ethereum ETF Will Be Delayed
Even though the U.S. Securities and Exchange Commission (SEC) has approved the approval of a spot Bitcoin ETF, TD Cowen, a prominent American investment bank and financial services company, predicts that the approval process for the Ethereum spot ETF is likely to be delayed.
Ethereum Spot ETF Faces Potential Hold
TD Cowen, the investment banking and financial services division of TD Securities, made a bold prediction. American stock exchange It is highly unlikely that the Ethereum Spot ETF will be approved before the deadline. Currently, the SEC is mandated to make a final decision on the rejection or acceptance of the Ethereum spot ETF between May 23 and August 7, 2024.
Earlier on January 10th, The SEC has officially approved a spot Bitcoin ETF., which raised expectations that the ETH spot ETF would follow suit. Ark 21 Shares, VanEck, fidelity, black stoneand Hashdex You have submitted your Spot Ethereum ETF application. The regulator also set a new deadline of January 25 for Grayscale’s Ethereum spot ETF.
TD Cowen’s prediction is consistent with the SEC’s generally cautious approach toward cryptocurrency-related investment products. Investment banks are regulated by ETH Spot ETF Delayed Until you have accumulated sufficient knowledge and experience from previously approved Bitcoin spot ETFs. The bank estimates that delays are likely to last beyond the upcoming election, although they could not take up to 26 months.
Likewise, cryptocurrency investor Scott Melker. X (formerly Twitter) highlighted the SEC’s possible hesitation in granting approval. Ethereum Spot ETF. Melker predicted that the SEC would be reluctant to approve an Ethereum ETF without external approval. legal pressure This is similar to what was observed during the Spot Bitcoin ETF approval process.
“Gary Gensler will not accept the Ethereum Spot ETF unless the courts force him to do so. I highly doubt we’ll see it anytime soon. But I hope to be proven wrong,” Melker said.
ETH price recovers above $2,500 | Source: ETHUSD on Tradingview.com
Classes before approval
JP Morgan, an American multinational financial services company, has introduced another layer of complexity to the approval process for the Ethereum Spot ETF. Nikolaos Panigirtzoglou, Managing Director at JP Morgan decided There was a 50% chance that the US SEC would approve these spot ETFs by the May deadline.
Panigirtzoglou said the SEC would have to classify ETH as a similar product to Bitcoin before officially approving it. Find the Ethereum ETF.
In contrast, Bloomberg senior analyst Eric Balchunas is more optimistic about the approval of the Ethereum Spot ETF. Analysts gave a 70% probability. secretary ETH spot ETF approved. Balchunas previously said he couldn’t imagine a scenario where the SEC approves the Spot Bitcoin ETF and rejects the Ethereum Spot Bitcoin ETF.
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