The approval of the Ethereum spot ETF 19B-4 file by the U.S. Securities and Exchange Commission (SEC) has sent shockwaves through the crypto community, with many predicting that the approval of other funds, including those tracking a basket of cryptocurrencies, is only a matter of time. Despite the SEC's unchanged internal attitude towards cryptocurrencies, investment bank TD Cowen anticipates that the approval of these funds will continue to move forward.

Jaret Seiberg, a Washington research group analyst at TD Cowen, wrote in a report that the approval of the Bitcoin ETF earlier this year made the approval of the Ethereum ETF inevitable, with the latter being approved about six months ahead of schedule. Seiberg predicts that within the next year, there may be an ETF product containing a 'basket of crypto tokens', which could include only Bitcoin and Ethereum, or possibly more currencies.

However, this does not mean that the SEC's overall stance on cryptocurrencies has changed. SEC Chairman Gary Gensler, who is critical of cryptocurrencies, issued a statement strongly opposing the 'Financial Innovation and Technology Act of the 21st Century' (FIT 21), a crypto legislation that could potentially weaken his agency's power. Gensler stated that the failures, frauds, and bankruptcies in the crypto industry are not due to a lack of rules or unclear rules, but because many participants in the crypto industry do not comply with the rules.

Despite potential setbacks for Gensler's agency, TD Cowen predicts that the SEC will maintain a Democratic majority before 2026 and will continue to sue crypto trading platforms that trade tokens that the SEC considers to be unregistered securities. This could lead to a more stringent regulatory environment for the crypto industry, but it also presents opportunities for those who are willing to adapt and comply with the rules.

In conclusion, the approval of the Ethereum ETF is a significant milestone for the crypto industry, and it is likely that we will see more ETFs in the future. While the SEC's stance on cryptocurrencies has not changed, the approval of these funds could lead to a more mainstream acceptance of cryptocurrencies and a greater understanding of their potential.