Ethereum ETFs should start trading ‘before November’, says JPMorgan

Trading of spot Ethereum (ETH) ETFs, recently approved in the United States, could begin well before November, according to analysis from JPMorgan.

In a report released this Friday (24), analysts led by Kenneth Worthington indicated that the approval of ETFs and interest in cryptocurrencies are becoming politically relevant issues in the run-up to the 2024 US presidential elections. Spot ETH ETF trading is expected to begin soon.

As CriptoFácil reported, on Thursday, the US Securities and Exchange Commission (SEC) approved the 19b-4 forms of eight spot Ethereum ETF applicants, including Grayscale, Bitwise, BlackRock, VanEck, Ark 21Shares, Invesco, Fidelity and Franklin.

However, the S-1 filings for these ETFs are still awaiting SEC approval before the funds can hit exchanges.

Trading Ethereum ETFs in the US

The SEC’s sudden approval of Ethereum ETFs came after the agency resumed dialogue with interested parties earlier in the week. This came after months of stalled negotiations. This decision was a strategic move at a time of growing debate over cryptocurrency regulation.

However, the approval of Ethereum ETFs was likely facilitated by the removal of references to staking from 19b-4 forms by issuers. Staking, the process by which cryptocurrency holders help maintain the network in exchange for rewards, remains a contentious issue between fund issuers and the SEC

The main concern is whether the staking of ETH by issuers on behalf of ETF shareholders constitutes an investment contract, and therefore a security.

Coincidentally, the approval of Ethereum ETFs came one day after the US House of Representatives passed the Financial Technology and Innovation for the 21st Century Act, known as the FIT 21 bill.

This bill gives the U.S. Commodity Futures Trading Commission (CFTC) jurisdiction over cryptocurrencies. Additionally, it classifies digital assets as “digital commodities” rather than “securities,” over which the SEC would have oversight.

Despite approval in the Chamber, the chances of the bill passing the Senate are lower. Furthermore, Joe Biden’s government has declared that it does not support the project, although it has not threatened to veto it.

With trading in spot Ethereum ETFs expected to begin soon, the cryptocurrency market may be preparing for a period of significant change, both regulatory and market.