Ethereum Spot ETF Approval Faces Potential Delay, Says TD Cowen
TD Cowen, an investment bank and financial service division of TD Securities, predicts that the US SEC is unlikely to approve Ethereum Spot ETFs before the August 7, 2024 deadline. The SEC recently approved Spot Bitcoin ETFs, leading to expectations that ETH Spot ETFs would also be approved. However, major firms such as Ark 21 Shares, VanEck, Fidelity, BlackRock, and Hashdex have submitted applications for a Spot Ethereum ETF. TD Cowen’s forecast aligns with the SEC’s cautious approach to cryptocurrency investment products. The bank believes that the SEC may delay the approval until it gains more experience from its previously approved Bitcoin Spot ETFs. Crypto investor Scott Melker also suggests that the SEC may hesitate to approve Ethereum Spot ETFs without legal pressure similar to what was observed during the approval of Spot Bitcoin ETFs.
Optimism and Doubts Surround Approval of Ethereum Spot ETFs
While TD Cowen and Scott Melker anticipate delays or hesitations in approving Ethereum Spot ETFs, Bloomberg senior analyst Eric Balchunas is more optimistic. Balchunas believes there is a 70% chance of the SEC approving ETH Spot ETFs. He argues that it is unlikely for the SEC to approve Spot Bitcoin ETFs but reject Ethereum Spot ETFs. The final decision on the approval of Ethereum Spot ETFs will be made by the SEC by August 7, 2024.
Hot Take: Will We See an Ethereum Spot ETF Soon?
The approval process for Ethereum Spot ETFs faces uncertainty as some predict potential delays while others remain optimistic. TD Cowen foresees a prolonged approval process due to the SEC’s cautious approach and its need for more experience with Bitcoin Spot ETFs. On the other hand, Bloomberg senior analyst Eric Balchunas believes there is a high chance of approval for Ethereum Spot ETFs. The final decision lies with the SEC, and it remains to be seen whether external pressures or the SEC’s own evaluation will influence the outcome. Crypto investors and enthusiasts eagerly await the SEC’s decision on Ethereum Spot ETFs, as its approval could have a significant impact on the cryptocurrency market.
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