Spot Ethereum ETF Approval May Be Delayed Until 2026 On “Political Call” By Gary Gensler, TD Cowen Says

A spot Ethereum ETF (exchange-traded fund) may not be approved in the U.S. until late 2025 or early 2026, said investment bank TD Cowen.

“We believe there is no upside for SEC Chair Gary Gensler to approve a spot Ethereum ETF given how upset progressive Democrats were over the agency’s approval of a spot bitcoin ETF earlier this month, ” said TD Cowen Washington Research Group analysts led by Jaret Seiberg in a Jan. 29 note. “This is a political call.” 

TD Cowen Pulls the Plug on its Crypto Unit Cowen Digital

Gary Gensler Needs The Support Of Progressives

In order to push his agenda in the next election year, Gensler needs the support of progressive democrats, noted TD Cowen. This remains true even if the SEC Chair pursues a different role as Treasury secretary in the event Joe Biden wins a second term, said the bank.

“There is no reason to provoke a needless fight,” the analysts said. “We say needless, as our view remains that Gensler is in no hurry to approve an Ethereum ETF as he would first like more experience with the performance of the recently approved spot Bitcoin ETFs.“ 

This is “consistent with his broader approach to crypto, which is to move incrementally and slowly when it comes to providing regulatory approvals or clarity, ” the bank added.

Investment Giants’ Differing Timelines For A Spot Ethereum ETF

Wall Street banking giant JPMorgan echoes TD Cowen’s sentiment that a spot Ethereum ETF will not be approved any time soon. Earlier this month, it said there is only a 50% chance that these ETFs will be approved by May this year. 

“For the SEC to approve spot Ethereum ETFs in May, it would need to classify Ethereum as a commodity (similar to Bitcoin) rather than a security,” said JPMorgan’s Nikolaos Panigirtzoglou.

The JPMorgan analyst believes that this is “far from given.”

On the other hand, ARK Invest President and COO Tom Staudt said a spot Ethereum ETF may “soon” receive approval from the SEC.

Related Articles:

  • Bitcoin ETF Flows Dip Into The Red For The First Time Since Launch
  • Coinbase Price Tumbles After JPMorgan Downgrades Stock On Bitcoin ETF Disappointment
  • 5 Top Crypto Presales 2024: Unveiling the Most Anticipated Opportunities!

Comments

Post a Comment

Popular posts from this blog

Is $200 Within Reach For Solana Price? Here’s Why This Blockchain Firm Thinks So

Image
Like the general crypto market, the price of Solana (SOL) witnessed significant growth over the past week. According to the latest on-chain data, this might only be the beginning for SOL’s price, with several indications of further upside potential for the altcoin. What’s Behind Solana’s Recent Price Climb? In a new report, blockchain intelligence firm Santiment offered insight into the recent price of Solana. According to the analytics platform, the price of SOL has swung upward by more than 33% since the 4th of July, rewarding investors who continued to bet big on it despite the sluggish market conditions. Related Reading Crypto Market Rebounds From Lows, But Why Are Cardano Holders Suffering Losses? 19 hours ago Santiment mentioned that this positive run of form displayed by the altcoin over the past two weeks can be linked to investo...
Read more

Bitcoin Ordinals marketplace Bioniq launches on ICP

Bioniq, a new market place for Bitcoin Ordinals, introduces a distinctive approach by operating on the Internet Computer (ICP) blockchain. The introduction of Bioniq, a Bitcoin Ordinals market place, marks a notable development in the evolving landscape of cryptocurrency. Distinctively, Bioniq operates on the Internet Computer (ICP) blockchain, a platform developed by Dfinity, rather than directly on Bitcoin. This approach positions ICP as a type of layer-2 network for Bitcoin, a significant deviation from traditional practices in this space. Hello world! We're an experienced team of Web3 developers bringing you the worlds greatest trading experience for ordinal NFTs Send, receive, inscribe, buy, sell, swap, trade, auction, offer, and collateralize all in the works Can't wait to show you what we are building — bioniq (@bioniqMarket) February 28, 2023 Bioniq claims to offer several benefits including being the “world’s fastest” market place for Bitco...
Read more

Solana Trades Above $18 As Sellers Signal A Return To The Downtrend

Image
Mar 13, 2023 at 08:13 // Price Author Coin Idol Solana (SOL) is trading at a high of $18.84. The cryptocurrency value is rising again as it leaves the negative trend area. Solana price long term forecast: bearish The cryptocurrency price will cross the moving average lines and the $20 resistance level if the bullish momentum continues. The recent price rally becomes conceivable if the down trend reaches the historically significant price level of November 10, 2022. The historical price level is the current support level when the altcoin rises again....
Read more