📰 Table Of Contents
Introduction
TD Cowen’s expectations and analysts’ opinions on the approval of a Spot Ethereum ETF are key points for consideration in the crypto market. This article delves into the reasons behind the speculations and the potential impact on the market.
TD Cowen’s Perspective
According to TD Cowen, the approval of a Spot Ethereum ETF is not expected in the near future. The reasoning behind this stance is linked to the perceived lack of upside for SEC Chair Gary Gensler. This sentiment is reinforced by the recent approval of a Bitcoin spot fund by the SEC, which sets the stage for the next significant milestone in the crypto markets – an Ethereum spot ETF.
Political Call and Progressive Democrats’ Influence
Analysts led by Jaret Seiberg believe that the approval of a spot Ethereum ETF is a political call, and it is unlikely to occur this year. They assert that there is no upside for SEC Chair Gary Gensler to approve such an ETF, especially considering the concerns raised by progressive Democrats over the agency’s approval of a spot bitcoin ETF. The analysts also highlight the importance of progressive lawmakers’ support for Gensler’s agenda, especially in an upcoming election year.
Gensler’s Approach and Future Expectations
The analysts emphasize that Gensler is not in a hurry to approve an Ethereum ETF and may require more experience with the performance of the recently approved spot Bitcoin ETFs. They anticipate a potential decision on the matter in late 2025 or early 2026, reflecting the cautious and gradual approach adopted by Gensler in crypto regulation.
SEC’s Postponement and Categorization of Ether
The SEC’s postponement of its decision on applications from Grayscale Investments and BlackRock has further dampened the odds for immediate approval of Ether-based spot ETFs. The categorization of Ether as a commodity or a security is central to this deliberation, impacting its suitability as an underlying asset for an ETF.
Speculations and Projections
Goldman Sachs’ digital assets head, Mathew McDermott, is confident about the potential approval of Spot Ethereum ETFs in the coming months. Deutsche Bank and Bloomberg’s ETF Analyst, Eric Balchunas, offer their respective estimations and likelihoods of a spot Ethereum ETF being approved by May. These speculations indicate the anticipation and uncertainty surrounding the future of Ethereum-based ETFs.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
