JPMorgan talks approved Ethereum spot ETF and the future of cryptocurrencies.

JPMorgan predicts that trading in the recently approved spot Ethereum ETF will begin well before November. The company sees the approval of these ETFs and the entire cryptocurrency market as an increasingly political issue, especially ahead of the 2024 U.S. presidential election.

“We expect Spot ETH ETF trading to begin before November,” a team of JPMorgan analysts led by Kenneth Worthington said in a report published today.

On Thursday, the U.S. Securities and Exchange Commission (SEC) approved Form 19b-4 applications for eight spot Ethereum ETFs. These include Grayscale, Bitwise, BlackRock, VanEck, Ark 21Shares, Invesco, Fidelity, and Franklin.

All approvals are made as a single bulk order. However, these ETFs’ S-1 filings are still awaiting SEC approval before trading can begin. Many analysts predict that trading will begin in the coming weeks.

The SEC’s approval of the ETH ETF comes after months of deliberations and a reunion with stakeholders earlier this week.

The spot Ethereum ETF approval likely occurred because issuers removed staking-related language from Form 19b-4. Staking is a contentious issue between fund issuers and the SEC. It is unclear whether issuers holding ETH on behalf of ETF investors will enter into investment contracts to create securities subject to the Howey test.

“The staking debate will continue, as the current focus is on whether issuers can maintain staking rewards on their own,” JPMorgan analysts said.

The approval of the ETH ETF coincided with the U.S. House of Representatives passing the 21st Century Financial Innovation and Technology Act, also known as the FIT 21 Act. Here’s what analysts have to say on the subject:

“But the bill is unlikely to pass the Senate, and the Biden administration has said it does not support the bill but has not yet threatened to veto it.”

*This article is not investment advice.