Ethereum ETFs will hit the market before the presidential elections, says JPMorgan – DiarioBitcoin

Analysts of JPMorgan suggest that the approval of ETFs Ethereum, Its arrival on the stock market and other pro-crypto measures are part of a political agenda, with which the current government wants to provide a friendlier perspective towards the sector before the next presidential elections.

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• The analysts of JPMorgan believe that ETFs Ethereum They will hit the stock market before November
• Yesterday the forms were approved 19b-4, but the applications are still missing S-1, with which they will begin operations
• They believe that all this is a political issue, precisely to generate trust in the crypto sector
• They consider that this could be used in their favor in the face of the next presidential elections.

After the recent approval by the US Securities and Exchange Commission (SEC) to ETF applications Ethereum in cash, analysts JPMorgan They believe that these products will be able to reach the stock market no later than November of this year, once the agency grants the last missing permit for the launch of said funds.

ETFs Ethereum They will begin trading in the coming months

The analysts’ reading of JPMorgan came into place in an analysis published today, reviewed by the media The Blockwhere the team led by analyst Kenneth Worthington considers that the US government is interested in speeding up the launch of this product, hoping that it will materialize before the presidential elections scheduled for the end of this year.

In this regard, the report reads:

We view the approval of this ETF, and cryptocurrencies in general, as an increasingly political issue ahead of the 2024 US presidential election. As such, we expect trading of the ETH Spot ETF to begin well before November.

Let us keep in mind that yesterday the SEC approved the forms 19b-4 for at least eight ETF applications Ethereum in cash, but the agency still needs to admit the records S-1 of these funds, with which they will now be able to begin trading on the US stock exchanges. It is around the latter where the doubts lie, since although many seem to trust that there are no reasons for a last-minute rejection, it cannot be specified when that verdict will come.

Regarding the approval of this batch of forms, the analysts of JPMorgan They assure that most likely all these proposals passed because they removed from the cash ETFs the possibility of putting the assets housed in the funds as collateral. If they had maintained this condition, they risked conflicts with the SEC in the face of what could be interpreted as an offer of unregistered securities, which has put the agency against cryptocurrencies that operate under staking mechanisms.

However, the team JPMorgan He insists that this debate is still open, but that the biggest doubt is whether the rewards generated by staking will go to investors, or if, on the contrary, they will remain for the responsible administrators.

Crypto landscape in the US begins to change

While analysts debate when ETFs Ethereum will begin operations, another very important aspect on the table is the change that the approval of these products represents for the local crypto landscape.

Although analysts already anticipated that the approval of ETFs Ethereum It is a more political issue at the moment, it remains to be seen what other measures could come into place in the coming months in favor of the digital currency sector. Those who closely follow the evolution of the issue assure that the US government is trying to sell a friendlier image regarding cryptocurrencies, so more actions could come in place to project that feeling.

Recently, legislators voted to approve two quite notable bills:

• First of all there is the FIT21 Lawwhich establishes the first provisions for addressing cryptocurrencies by empowering the Commodity Futures Trading Commission (CFTC) to supervise said market.
• And the other is the CBDC State Anti-Surveillance Law, with which they prevent the Federal Reserve issue a cryptocurrency for retail consumption, and thus prevent it from being used to restrict the financial freedoms of residents.

Article by Angel Di Matteo / DailyBitcoin

Picture of Unsplash

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