JPMorgan analysts foresee the trading of recently approved spot Ethereum exchange-traded funds (ETFs) to commence well before November, driven by political dynamics leading up to the 2024 U.S. presidential election. In a report released on Friday, the analysts, led by Kenneth Worthington, highlighted the growing political significance of crypto, particularly in the context of the upcoming election.
The approval of spot Ethereum ETFs by the U.S. Securities and Exchange Commission (SEC) is seen as part of a broader political narrative shaping up ahead of the presidential election. JPMorgan believes that this political backdrop will expedite the trading of spot Ethereum ETFs, with analysts expecting it to begin well ahead of November.
The SEC’s recent approval of 19b-4 forms for eight spot Ethereum ETF applicants, including industry giants like Grayscale, Bitwise, BlackRock, and VanEck, was a significant development. While these approvals pave the way for ETF trading, the process is not yet complete. S-1 registrations for these ETFs are still awaiting SEC sign-off before they can officially start trading. Analysts anticipate trading to commence in the coming weeks as registrations progress.
The SEC’s sudden approval of Ethereum ETFs came after it re-engaged with stakeholders earlier in the week, signaling a change in its approach following months of stalled conversations. This shift indicates a recalibration of the regulatory environment for crypto assets, with implications for market participants and investors.
