PMorgan has forecasted that the trading of spot Ethereum ETFs, recently approved by the SEC, will begin before the 2024 US presidential elections, emphasizing the growing political stakes surrounding cryptocurrency.
SEC Approval of Ethereum ETFs
In a pivotal development on May 23, the SEC approved the 19b-4 forms for eight spot Ethereum ETFs from prominent financial entities including VanEck, BlackRock, Grayscale, and Fidelity. This approval is a crucial step towards the trading of these ETFs, though the activation of their S-1 registration statements is still pending. JPMorgan stated, “The issuers’ registration statements remain under review by the SEC. As such, there is no anticipated date on when these ETFs will begin trading.”
Political Influence on Crypto Regulation
Crypto has become increasingly entwined with US politics, especially in light of the upcoming presidential elections. Recent legislative and executive actions indicate a significant shift in regulatory and political attitudes towards cryptocurrencies. The House's passage of FIT21, aimed at refining the SEC’s role in crypto regulation, and President Biden’s openness to crafting a balanced regulatory framework underscore the importance of crypto in political discourse.
The Role of Political Developments
Former President Donald Trump’s decision to accept crypto for campaign contributions further underscores the political dimensions of cryptocurrency. Additionally, the congressional move to overturn an SEC rule related to crypto, despite a presidential veto threat, marks a critical step towards crypto’s mainstream acceptance. These events suggest that political dynamics could play a crucial role in the timeline for the commencement of ETF trading.
Anticipating a Transformative Period for Crypto
As political considerations continue to influence the regulatory landscape, JPMorgan’s cautious yet optimistic outlook reflects a broader acknowledgment of crypto’s integration into the mainstream financial system. The forthcoming months could be transformative, with the potential trading of Ethereum ETFs before the 2024 elections, marking a significant milestone in the acceptance of cryptocurrencies.
