While the relatively quick approval of an Ethereum spot ETF last week surprised some, the research team at investment bank TD Cowen said the approval was inevitable, following the approval of a Bitcoin ETF earlier this year. The investment bank also believes it is only a matter of time before other funds, such as those tracking a basket of tokens, are approved.
"This is about six months earlier than we expected ...However, this ruling is inevitable once the Securities and Exchange Commission (SEC) approves a cryptocurrency futures ETF." Jaret Seiberg of TD Cowen Washington Research Group above A report released on Thursday (23rd) stated: “The next product that may be launched within a year is a “basket of crypto tokens”, which may only include Bitcoin and Ethereum. Ether), but may include more."
According to previous reports by Zombit, the SEC approved the 19b-4 proposal related to Ethereum spot ETFs last week. However, investors still have to wait for the SEC to approve the S-1 registration statement submitted by the fund issuer before they can start trading such ETFs. Discus Fish, the founder of Cobo, a digital asset custody solution provider, predicts that in the fastest case, the S-1 document for the Ethereum spot ETF may be approved in early June and listing and trading will begin in mid-June.
However, this approval does not mean that the SEC has completely changed its attitude towards cryptocurrencies. SEC Chairman Gary Gensler recently issued a highly critical statement on cryptocurrencies, opposing the passage of a cryptocurrency market structure bill that could weaken his agency’s power.
While the SEC may face setbacks, TD Cowen predicts the regulator will maintain its Democratic majority through 2026. “…we expect the agency to continue to prosecute cryptocurrency exchanges that trade tokens it considers to be unregistered securities,” the researchers wrote.
