JPMorgan expects the latest approved ETFs to begin trading as early as November. The company believes that the approval of these ETFs makes the overall cryptocurrency market more politically charged. Especially before the 2024 US presidential elections.
“We expect trading in ETH spot ETFs to begin before November,” a team of JPMorgan analysts led by Kenneth Worthington said in a report released today.
Last Thursday, the US Securities and Exchange Commission (SEC) approved Form 19b-4 from 8 Ethereum ETF applications, including Grayscale, Bitwise, BlackRock, VanEck, Ark 21Shares, Invesco, Fidelity, and Franklin.
All approvals have been received in one order, however, the ETFs' S-1 filings are still awaiting SEC approval before trading can begin. Many analysts expect trading to begin in the next few weeks.
The SEC's approval of ETH ETFs comes after another meeting with stakeholders earlier this week after months of deliberations.
Spot ETFs are likely to be approved because the issuer removed staking-related features from its Form 19b-4, which is controversial between issuers and the SEC, and it is not clear whether the issuer can sign ETH on behalf of an ETF investor. Create an investment contract and thus be a security subject to the Howey test?
“Discussions around staking are likely to continue. As we understand, the focus now is whether these issuers will be able to keep these staking rewards for themselves,” JPMorgan analysts said.
The approval of the ETH ETF coincides with the US House of Representatives passing the Financial Innovation and Technology for the 21st Century Act, also known as draft FIT 21, analysts said about this.
But the chance of the bill passing the Senate is slim, and the Biden administration has said it does not support the bill. But it has not yet threatened to curb it.”
source: bitcoinsystem
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