While this week's swift approval of Ethereum spot ETFs surprised some, investment bank TD Cowen's research team sees the approval as inevitable following the approval of the ETFs. Bitcoin earlier this year.
“This is happening about six months faster than we expected… but this decision was also inevitable after the SEC approved crypto Futures ETFs,” said Jaret Seiberg of the Washington research group by TD Cowen wrote in a note on Thursday. Next within a year could be a product with a “basket of crypto tokens,” possibly just Bitcoin and Ether but possibly more, Seiberg continued.
However, the approval does not signal an overall change in the SEC's attitude towards cryptocurrencies, as the Commission's chairman, Gary Gensler, issued a statement “highly critical” of the passage of the law Cryptocurrency could reduce the agency's power.
“The crypto industry's record of failure, fraud and bankruptcy is not because we don't have rules or because the rules are unclear. That is because many players in the crypto industry are not playing by the rules,” Gensler wrote in a statement shortly before the U.S. House of Representatives passed the Financial and Technological Innovation for the 21st Century Act, or FIT 21 .
While Gensler's agency may face difficulties, TD Cowen predicts that the SEC will retain a Democratic majority through 2026. “…We predict the agency will continue to sue cryptocurrency trading platforms trading tokens that the agency believes are unregistered securities,” the researcher wrote.
