Opinion that the US presidential election will have an impact
On the 29th, US investment bank TD Cowen predicted that the approval of a physical ETF for the crypto asset (virtual currency) Ethereum (ETH) will be from late 2025 to early 2026.
The TD Cowen research group, led by Jarrett Seiburg, opined:
We do not expect the U.S. Securities and Exchange Commission (SEC) to approve an Ethereum spot ETF in 2024.
This is for political reasons. Given how offended progressive Democrats were by the SEC’s approval of a Bitcoin spot ETF this month, we don’t see any good news for SEC Chairman Gary Gensler to approve an Ethereum spot ETF. .
Progressives generally refer to members of the left-wing or liberal wing of the Democratic Party who emphasize liberal values and take positions that seek to eliminate social inequality and injustice.
TD Cowen explained that with the US presidential election taking place this year, Gensler needs the support of progressives to advance his policies.
Gensler also said he would still need support from progressives if he were to seek another position, such as Treasury secretary, if President Joe Biden wins.
Furthermore, if the SEC rejects related rule changes and the review of the Ethereum spot ETF is prolonged, it is possible that new applications and lawsuits by ETF providers may be filed. He said it would likely take another year or two for the matter to be resolved either way.
Immediately after the approval of the Bitcoin spot ETF, TD Cowen also announced speculation that “the Ethereum spot ETF will be approved after the presidential election in November.” The SEC seems to have said that it will first observe the situation after approving the Bitcoin ETF and wait for a while.
Expectations vary among companies regarding the timing of approval for the Ethereum spot ETF.
connection: U.S. investment bank TD Cowen “Ethereum ETF will not be approved immediately”
What is Bitcoin ETF?
An Exchange Traded Fund that includes Bitcoin as an investment. An investment trust is a financial product that collects money from investors into a single fund and invests it in stocks, bonds, etc. The system is such that the investment results are distributed according to each investor’s investment amount. Among investment trusts, ETFs are listed on stock exchanges, so they can be bought and sold like stocks.
▶️Virtual currency glossary
Learn about Bitcoin ETFs from the beginning: Explaining the advantages and disadvantages of investing and how to buy US stocks
Warren: “SEC’s decision was wrong”
Among the Democratic Party, Sen. Elizabeth Warren is also known for her skepticism towards cryptocurrencies. Warren posted the following on X on the 12th following the SEC’s approval of a Bitcoin spot ETF.
The SEC’s decision regarding Bitcoin spot ETFs is both legally and politically incorrect.
If the SEC intends to push cryptocurrencies deeper into the financial system, it is more urgent than ever for the crypto industry to comply with anti-money laundering rules.
Warren introduced the Digital Asset Money Laundering Prevention Act to Congress last May. The bill would also impose obligations under the Bank Secrecy Act on virtual currency wallet providers, miners, validators, etc.
connection: U.S. Coinbase strongly opposes Warren’s claims, saying they are “misrepresenting efforts to comply with the law.”
This move is opposed by the Bitcoin support group Satoshi Action Fund, which is working to support the submission of legislation to protect self-custody and mining rights.
connection: U.S. Virginia lawmaker submits bill to protect rights to virtual currencies such as mining