24 May

JPMorgan predicts that newly approved spot Ethereum exchange-traded funds (ETFs) will likely start trading before the November US presidential elections, highlighting the growing political significance of cryptocurrencies.

This outlook follows the unexpected approval of eight spot Ethereum ETFs by the US Securities and Exchange Commission (SEC) on May 23, marking a significant shift from the previous skepticism towards these financial instruments.

The SEC approved the 19b-4 forms for the Ethereum ETFs, which include products from VanEck, BlackRock, Grayscale, and Fidelity. However, these ETFs still need to activate their S-1 registration statements before they can begin trading.
JPMorgan noted:

“The issuers’ registration statements are still under review by the SEC. Thus, there is no confirmed date for when these ETFs will start trading.”

While Galaxy analysts predict trading could begin as early as July or August, JPMorgan takes a more cautious view. They believe political factors related to ETF approval and crypto regulation could impact the timeline, commenting:

“This important step towards final approval follows a sudden shift in regulatory sentiment earlier this week, with the SEC re-engaging with stakeholders after months of stalled discussions.”

This view aligns with recent political and regulatory developments in the crypto industry.

Last week, the House passed FIT21, a significant legislative effort to define the SEC’s role in crypto regulation. Additionally, President Joe Biden expressed a willingness to work with Congress on establishing a comprehensive regulatory framework for digital assets.

Furthermore, former President Donald Trump announced he would accept crypto for campaign donations.

These events, along with both houses of Congress voting to overturn an SEC crypto-related rule despite President Biden's veto threat, indicate a major step toward mainstream acceptance of crypto as a financial asset.

May 2024, Cryptoniteuae

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