Ethereum ETF to trade well before November, says JPMorgan: “Discussion around staking appears to continue”

On Thursday, the SEC approved the listing applications of eight U.S. companies. Ethereum (CRYPTO: ETH) Spot ETF marks a pivotal moment for the cryptocurrency market.

However, the issuer's registration statement is still under review and the exact timing of the transaction remains unclear.

The approvals come amid a notable shift in regulatory stance, with the SEC re-opening talks with parties after months of stalled negotiations, according to JPMorgan analyst Kenneth B. Worthington.

Worthington said Galaxy analysts expect trading could begin by July or August 2024. JPMorgan expects spot ETH ETF trading to begin “well before November” and become “increasingly politicized ahead of the 2024 U.S. presidential election.”

Related article: Ethereum to rise 60% after ETF approval: 'Market is expecting fireworks', experts say

“The debate over staking appears to be continuing.”'

Worthington also noted the key unresolved issue of whether staking ETH on behalf of ETF shareholders constitutes an investment contract under the Howey test.

The current filing has been amended to remove any reference to staking rewards and assert that such rewards will not be passed on to investors, a change that is believed to have influenced the recent regulatory approval. However, “the debate around staking appears to continue, and we are now seeing the focus shift to whether these issuers will retain such staking rewards for themselves,” Worthington said.

Focus on Cryptocurrency ETFs

Ethereum tracking funds and more ProShares Ether Strategy ETF (NYSE:EETH), Valkyrie Bitcoin and Ether Strategy ETF (NYSE:BTF), Bitwise Ethereum Strategy ETF (NYSE:AETH), Bitwise Bitcoin and Ethereum Equal Weight Strategy ETF (NYSE:BTOP), ProShares Bitcoin & Ethereum Market Cap Weighted ETF (NYSE:BETH), and ProShares Bitcoin & Ethereum Equal Weight Strategy ETF (NYSE:BETE) has a bright future ahead.

Popular Bitcoin ETFs include: Grayscale Bitcoin Trust (NYSE:GBTC), iShares Bitcoin Trust (NYSE:IBIT) and FidelityWise Origin Bitcoin Fund (NYSE:FBTC) may also be gaining attention in the future.

Read next: SEC Approves Spot Ethereum ETF, Opening Doors to Public Investors

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