Ethereum ETF Trading Will Go Live in November: JPMorgan

YEREVAN (CoinChapter.com) — Ethereum exchange-traded funds (ETF) trading will start in November, according to JPMorgan analyst Kenneth B. Worthington. Her prediction comes after the U.S. Securities and Exchange Commission’s (SEC) approval for the filings of eight spot Ethereum ETF applicants, including major Grayscale Investments, Bitwise Asset Management, BlackRock, and others. However, these ETFs still await SEC approval of their S-1 registrations before trading can commence.

Removing Ether Staking from ETF Proposal Boosts Approval Chances

Staking is a key issue between fund issuers and the SEC because it remains unclear whether an issuer staking ETH on behalf of an ETF shareholder represents an investment contract and, thus, a security under the Howey test, the JPMorgan analyst said.

The SEC uses the Howey test, which originated from a 1946 U.S. Supreme Court decision, to help determine whether transactions are investment contracts and thus subject to securities laws. According to this test, a security exists when money is invested in a common enterprise with a reasonable expectation of profits to be derived from the efforts of others.

“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,”

Worthington added.

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.

Politics Will Play a Key Role in Ethereum ETF Trading

Moreover, Worthington argues that cryptocurrencies, in general, will become “an increasingly political issue ahead of the 2024 U.S. presidential election.”

Justin Sun, founder of Tron’s blockchain, has urged the crypto community to support a pro-crypto candidate in the upcoming election. In a recent social media post, Sun emphasized the importance of backing a candidate who endorses cryptocurrencies.

He stated, “We should support a presidential candidate who endorses cryptocurrencies. We need to demonstrate to the candidate that the cryptocurrency community, companies, and protocols are significant stakeholders whose voices should be heard and whose interests should be protected.”

Former President Donald Trump, once a vocal critic of cryptocurrencies, has changed his stance. He now supports the crypto sector and has incorporated it into his re-election campaign.

Former President Donald Trump, once a vocal critic of cryptocurrencies, has changed his stance. He now supports the crypto sector and has incorporated it into his re-election campaign.