TD Cowen says Ethereum ETFs clear the way for more crypto funds
Fresh from the approval of spot Ethereum ETFs, the major investment bank sees approval of other funds, such as a fund that tracks a basket of coins, as only a matter of time, though the SEC’s internal approach to crypto hasn’t changed.
"This comes about six months faster than we expected...yet this decision was also inevitable once the SEC approved crypto futures ETFs," Jaret Seiberg from TD Cowen's Washington Research Group wrote in a note on Thursday. Next to come within a year might be an offering with a "basket of crypto tokens," possibly just Bitcoin and ether but possibly more, Seiberg continued.
However, the approval doesn't signal an overall change to the SEC's overall posture towards crypto, as crypto-critical chair of the Commission Gary Gensler issued a "highly critical" statement against the passage of crypto legislation that could diminish his agency's power.
"The crypto industry’s record of failures, frauds, and bankruptcies is not because we don't have rules or because the rules are unclear. It’s because many players in the crypto industry don’t play by the rules," Gensler wrote in a statement shortly before the U.S. House of Representatives passed the Financial Innovation and Technology for the 21st Century Act, or FIT 21 .
Although Gensler;s agency may face a setback, TD Cowen predicts the SEC will keep its Democratic majority through 2026. "...We expect the agency will continue to litigate against crypto trading platforms that trade tokens that the agency believes are unregistered securities," the researcher wrote.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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