After the approval of Bitcoin Spot ETFs, the crypto world is abuzz with the question: Will Ethereum Spot ETFs also receive the nod from the U.S. Securities and Exchange Commission (SEC)? Here’s what a major investment bank thinks.

According to investment bank TD Cowen, the SEC is unlikely to approve spot Ethereum ETFs in the near future. The bank’s Washington Research Group, led by Jaret Seiberg, recently noted that the SEC might want to gain experience from Bitcoin ETPs before greenlighting an Ethereum or any other crypto token ETP.

The bank points out that the first deadline for such funds’ approval is in May, but suggests that approval might not come until after the 2024 U.S. presidential elections. The SEC’s approval of spot Bitcoin ETFs this week came after more than a decade since the first application and 26 months after the green light for Bitcoin futures ETFs in October 2021.

SEC Chair Gary Gensler, while approving spot Bitcoin ETFs, stated that a federal court left the agency with no choice but to approve these funds, as the SEC lost a lawsuit filed against it by Grayscale Investments. Gensler maintains that the majority of cryptocurrencies are investment contracts and thus subject to federal securities laws.

TD Cowen views the approval of spot Bitcoin ETFs as consistent with Gensler’s slow approach, modeled after how the agency formulated rules for the ABS (asset-backed securities) market. The bank believes Congress will need to legislate a framework defining how tokens will be regulated, what disclosures will be required, and which agency will be responsible for investor protections.

Gensler’s term ends in June 2026, and he may maintain a Democrat majority at the SEC until then. TD Cowen concludes that this gives the U.S. time to learn from other countries before implementing a regulatory regime that would be difficult to change once established.