The U.S. Securities and Exchange Commission (SEC) is unlikely to approve an ETF based on the spot price of Ethereum in the near future, according to analysts from investment bank TD Cowen, reports The Block.
“We expect the SEC will not approve an ETP for other tokens soon, as it will want to study the experience of Bitcoin ETFs before approving a similar instrument based on Ethereum or another cryptocurrency,” the experts stated.
In their view, this could occur after the U.S. presidential elections scheduled for November 5, 2024.
Previously, JPMorgan analyst Nikolaos Panigirtzoglou stated that the SEC first needs to classify Ethereum as a commodity rather than a security. He estimated the probability of this happening by May at no more than 50%.
Earlier, BlackRock CEO Larry Fink saw value in a spot Ethereum ETF. In his opinion, it is “just steps towards tokenization.”
Following the launch of Bitcoin ETFs, the price of Ethereum tested the $2600 level for the first time since May 2022.