– TD Cowen doesn’t expect a Spot Ethereum ETF to be approved soon
– An Ethereum spot ETF is the next expected milestone in crypto markets
– Analysts believe that there is no upside for SEC Chair Gary Gensler to approve a spot Ethereum ETF
– Approval might unfold over one or two years, with a decision in late 2025 or early 2026
– Gensler has a cautious and gradual approach to crypto regulation
– The SEC recently postponed its decision on applications for Ether-based spot ETFs
– Many experts are speculating about when the first approval might occur, or whether it will at all
– Most expect a may approval for spot Ethereum ETFs
Section 1: Introduction
– TD Cowen does not expect a Spot Ethereum ETF to be approved soon, citing reasons related to SEC Chair Gary Gensler’s position and political implications.
– Following the approval of Bitcoin spot funds, the next expected milestone in crypto markets is the approval of an Ethereum spot ETF.
– Analysts do not expect an Ethereum spot ETF to be approved in 2024, stating that there is no upside for SEC Chair Gary Gensler to approve it given the political climate.
Section 2: Gensler’s Approach and Concerns
– Gensler’s cautious and gradual approach to crypto regulation, as seen with the recent approval of bitcoin ETFs, suggests that he may not be in a hurry to approve an Ethereum ETF.
– The postponement of the SEC’s decision on applications from Grayscale Investments and BlackRock has raised concerns about whether Ether should be categorized as a commodity or a security.
– The classification of Ether has consequences for its suitability as an underlying asset for an ETF, and the SEC’s hesitation reflects its careful approach to this matter.
Section 3: Timeline and Expectations
– TD Cowen and other experts speculate about the timeline for the approval of an Ethereum spot ETF, with some suggesting a decision in late 2025 or early 2026.
– Goldman Sachs’ digital assets head Mathew McDermott is confident that an Ethereum spot ETF will be approved in the coming months, while Deutsche Bank estimates that the SEC will make its first decision on such a fund by May 23.
– Bloomberg’s ETF Analyst, Eric Balchunas, projected a 70% likelihood of a spot Ethereum ETF being approved by May.
Section 4: Overview of ETH and Ethereum
– A brief overview of Ethereum and the terminology associated with it, including the asset (Ether) and the blockchain (Ethereum).
– Information about the history and supply of Ether, with a tweet providing additional details about the asset.
Section 5: Conclusion
– The approval of an Ethereum spot ETF is a significant milestone in the crypto market, and analysts have differing opinions about the timeline and likelihood of approval.
– The cautious approach of the SEC, concerns about the classification of Ether, and the political implications for SEC Chair Gary Gensler are all factors contributing to the uncertainty surrounding the approval of an Ethereum spot ETF.
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