Hassan Maishera
TL;DR
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RD Cowen believes that the US SEC might not approve a spot Ethereum ETF for at least another year or two.
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BlackRock and Fidelity are among those who have filed for spot Ether ETFs.
TD Cowen Doesn’t Expect a Spot Ether ETF Soon
Investment bank TD Cowen believes that the United States Securities and Exchange Commission (SEC) might not approve a spot Ether exchange-traded fund (ETF) soon.
According to the bank, the SEC could approve a spot Ether ETF by late 2025 or early 2026.
TD Cowen Washington Research Group, led by Jaret Seiberg, wrote in a note on Monday that,
"We do not expect the SEC in 2024 to approve a spot Ethereum ETF. This is a political call. 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."
The TD Cowen team added that Gensler needs the support of progressives to push forward his agenda in this election year.
“There is no reason to provoke a needless fight. 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," TD Cowen added.
So far, more than six companies, including BlackRock and Fidelity, have filed for a spot Ether ETF.
TD Cowen’s comment comes a week after the SEC again postponed its decision on Grayscale Investments' proposal for a spot Ethereum ETF. The analysts added that the SEC can take its time reviewing the spot Ethereum applications.
"It can eventually reject the rule change, which either will lead to a new application or litigation. Either will take another year or two to play out," the bank added.
TD Cowen expects a spot Ethereum ETF to be approved in late 2025 or early 2026 even if Congress fails to enact broader crypto market structure legislation in 2025.
