TD Cowen Predicts Approval of Ethereum ETF Will Lead to an Assortment of Crypto Token Funds Within a Year

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        <p><span class="date">May 27, 2024 1:05 AM</span> | <span>2 min read</span></p>
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    <p>The go-ahead for physically-backed <strong>Ethereum</strong> (CRYPTO: <a target="_blank" class="ticker" href="https://www.benzinga.com/quote/eth/usd">ETH</a>) exchange-traded funds (ETFs) may trigger the establishment of additional crypto-focused investment offerings soon, contends powerhouse financial firm <strong>TD Cowen</strong>.</p>
    <p><strong>Recent Developments</strong>: Analysts at <strong>TD Cowen</strong>'s Washington Research Group consider the approval of Ether-based ETFs to be a pivotal development, engendering heightened institutional interest in crypto assets, as per The Block <a target="_blank" href="https://www.theblock.co/post/296769/td-cowen-says-ethereum-etfs-clear-the-way-for-more-crypto-funds?utm_source=twitter&utm_medium=social">reported</a>.</p>
    <p><em>Also Check Out: <a target="_blank" href="https://www.benzinga.com/markets/cryptocurrency/24/05/39013406/bitcoin-dogecoin-bounce-back-with-ethereum-lagging-trader-sees-price-discovery-next-week-u?itm_source=parsely-api" rel="noreferrer noopener">As Bitcoin and Dogecoin Revive, Ethereum Lags: Analyst Predicts Upcoming ‘Price Discovery’ Phase</a></em></p>
    <p><strong>Jaret Seiberg</strong>, a strategist from TD Cowen's Washington Research Group, remarked, “We anticipated a longer waiting period, but the approval came about half a year earlier than our predictions. Still, the decision felt like a foregone conclusion after the SEC greenlit crypto futures ETFs.”</p>
    <p>He also suggested that in the forthcoming year, the market could see portfolios encapsulating a “variety of crypto tokens,” potentially limited to Bitcoin and Ethereum or expanding to include a broader range.</p>
    <p><strong>Significance</strong>: The greenlight for Ethereum ETFs marks a critical evolution for the crypto sector. JPMorgan claims that trading for Ethereum ETFs could take off prior to November due to robust market appetite and prospects of growth, <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/05/39006731/ethereum-etfs-will-trade-well-ahead-of-november-says-jpmorgan-debate-around-staking">according to reports</a>.</p>
    <p>This ratification also denotes a fresh chapter for crypto assets, potentially fueling broader acceptance and investment in the crypto space <a target="_blank" href="https://www.benzinga.com/markets/cryptocurrency/24/05/39013537/ethereum-etfs-a-new-dawn-for-digital-assets">as indicated here</a>.</p>
    <p>Notwithstanding this advancement, the SEC persists with its overarching cautious approach towards cryptocurrencies. SEC Chairman <strong>Gary Gensler</strong> <a target="_blank" href="https://www.benzinga.com/markets/cryptocurrency/24/05/38961215/sec-chair-gensler-criticizes-fit-21-crypto-bill-warns-of-new-regulatory-gaps">voiced his reservations regarding new crypto-focused legislation</a>, highlighting regulatory challenges within the industry.</p>
    <p>Notably, Chairman Gensler <a target="_blank" href="https://www.benzinga.com/markets/cryptocurrency/24/05/38998814/unlike-bitcoin-sec-chief-gary-gensler-didnt-vote-on-spot-ethereum-etf-approvals">did not participate in the Ethereum ETF approval vote</a>.</p>
    <p>With a vision towards the future, TD Cowen anticipates that the SEC will retain its Democratic majority through 2026, presumably extending its legal confrontations with crypto trading platforms over what it deems as unregistered securities trading.</p>
    <p><em>Editiorial Read: <a target="_blank" href="https://www.benzinga.com/markets/cryptocurrency/24/05/39023300/donald-trump-i-will-ensure-that-the-future-of-crypto-and-bitcoin-will-be-made-in-the-usa">Donald Trump Promises: ‘The Future Of Crypto And Bitcoin Will Be Pioneered In the USA’</a></em></p>
    <p><strong><em>Disclaimer:</em></strong><em>This report was partially generated using AI tools and has been reviewed and published by Benzinga's editorial team.</em><a target="_blank" href="https://benzinga.com/apis" rel="noreferrer noopener"/></p>
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