According to analysts at investment bank TD Cowen, the US Securities and Exchange Commission (SEC) is unlikely to approve an ETF based on the spot price of Ethereum in the near term.
These have said:
"Our expectation is that the agency will not be approving ETPs for other crypto tokens any time soon as we believe the SEC will want to gain experience from Bitcoin ETPs before it approves an Ethereum or other crypto token ETP."
According to them, this could happen after the US presidential election, which is scheduled for November 5, 2024.
JPMorgan analyst Nikolaos Panigirtzoglou has said the SEC must first classify Ethereum as a commodity, not a security. He believes the odds of this happening in May will be no more than 50%.
Following the approval of spot Bitcoin ETFs, traders believe that spot Ethereum ETFs could be next to receive regulatory approval.