Crypto Analyzer

As the Bitcoin Spot Exchange Traded Fund (ETF) was launched in the U.S. market on January 10, attent..

## The Launch of Bitcoin Spot ETF and the Prospects of Ethereum ETF in the US Market

On January 10th, the Bitcoin Spot Exchange Traded Fund (ETF) was launched in the US market, drawing significant attention from investors and experts in the cryptocurrency space. This marked a significant milestone in the adoption of Bitcoin as a more conventional investment vehicle. However, another digital asset, Ethereum, is also in the spotlight as the possibility of an Ethereum Spot ETF approval lingers on the horizon.

The earliest final review deadline for Ethereum Spot ETF applications is set for May, with speculations indicating that the decision for approval might be challenging at this stage. TD Cowen, from the Washington Research Group, projected that the approval for an Ethereum ETF might come after the US Presidential Election, highlighting the complexities and processes involved in launching such financial products.

The approval of Bitcoin futures ETFs in October 2021 paved the way for the spot ETF approval by the US Securities and Exchange Commission (SEC) after a court ruling reaffirmed the compatibility of futures and spot products. With this precedent set, expectations are growing for the potential emergence of spot ETFs based on Ethereum, considering the popularity and trading volume of Ethereum futures ETFs.

Despite the optimism surrounding the Ethereum Spot ETF, TD Cowen emphasized the need for the SEC to gain more experience in the market following the launch of Bitcoin’s spot exchange index (ETP). The firm suggested that the release of Ethereum spot ETFs might be delayed until after the US Presidential Election in November. This projection takes into account the term of SEC Chairman Gary Gensler, who is known for his cautious stance on virtual assets and is expected to remain in office until June 2026.

Additionally, JPMorgan, the largest investment bank in the US, expressed skepticism regarding the approval of Ethereum’s spot ETF in May, indicating that the SEC might have concerns about Ethereum’s securities issues. This adds further complexity to the regulatory landscape surrounding digital assets and ETF products in the US market.

Overall, while the launch of the Bitcoin Spot ETF has opened new avenues for cryptocurrency investments, the path towards an Ethereum Spot ETF approval seems to be filled with regulatory challenges and uncertainties. Investors and industry watchers will continue to monitor developments closely as the cryptocurrency market evolves in the coming months.