Ethereum ETFs Will Trade 'Well Ahead Of November,' Says JPMorgan: 'Debate Around Staking Seems To Persist'

On Thursday, the SEC approved applications to list eight U.S. Ethereum ETH/USD spot ETFs, marking a pivotal moment in the cryptocurrency markets.

However, the issuers' registration statements are still under review, and the exact timeline for trading remains uncertain.

According to JPMorgan analyst Kenneth B. Worthington, these approvals come amid a notable shift in regulatory sentiment, with the SEC reengaging with stakeholders after months of stalled conversations.

Worthington noted that Galaxy analysts anticipate that trading might begin by July or August 2024. JPMorgan expects trading of the spot ETH ETF to begin “well-ahead of November,” and will become “an increasingly political issue ahead of the 2024 U.S. presidential election.”

Also Read: Ethereum Set For 60% Rally Following ETF Approval, Says Expert: ‘The Market Is Expecting Fireworks’

‘Debate Around Staking Seems To Persist‘

Worthington also highlighted a significant unresolved issue: whether staking ETH on behalf of ETF shareholders constitutes an investment contract under the Howey test.

Current applications have been amended to exclude references to staking rewards, asserting that such rewards will not be passed to investors. This change is believed to have influenced the recent regulatory approval. However, “the debate around staking seems to persist as we now understand the focus is on whether these issuers will/can retain such staking rewards for themselves,” said Worthington.

Keep An Eye On Crypto ETFs

Ethereum-tracking funds such as ProShares Ether Strategy ETF EETH, the Valkyrie Bitcoin and Ether Strategy ETF BTF, the Bitwise Ethereum Strategy ETF AETH, the Bitwise Bitcoin and Ether Equal Weight Strategy ETF BTOP, the ProShares Bitcoin & Ether Market Cap Weight Strategy ETF BETH, and the ProShares Bitcoin & Ether Equal Weight Strategy ETF BETE, could see sunnier days ahead.

Popular Bitcoin ETFs such as the Grayscale Bitcoin Trust GBTC, the iShares Bitcoin Trust IBIT and the Fidelity Wise Origin Bitcoin Fund FBTC may also see increased attention in the coming days.

Read Next: SEC Approves Spot Ethereum ETFs, Opening Door For Mainstream Investors

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