JPMorgan anticipates that the recently approved spot Ethereum exchange-traded funds (ETFs) will likely start trading before the November US presidential elections, given the increasing political importance of cryptocurrency.

This prediction comes after the US Securities and Exchange Commission (SEC) unexpectedly approved eight spot Ethereum ETFs on May 23, a significant shift from its previous skepticism.

The SEC approved the 19b-4 forms for the Ethereum ETFs from issuers such as VanEck, BlackRock, Grayscale, and Fidelity. However, these ETFs still need to activate their S-1 registration statements before they can begin trading.

JPMorgan commented on the situation, saying:

“The issuers’ registration statements remain under review by the SEC. As such, there is no anticipated date on when these ETFs will begin trading.”

While Galaxy analysts expect trading to start as early as July or August, JPMorgan remains cautious. They believe political factors related to ETF approval and crypto regulation could impact the timeline. They noted:

“This important step towards final approval follows a sudden regulatory sentiment reversal earlier this week when the SEC re-engaged with stakeholders after months of stalled discussions.”

This view is consistent with recent significant political and regulatory actions in the crypto industry.

Last week, the House passed FIT21, a key legislative effort to clarify the SEC’s role in crypto regulation. Additionally, President Joe Biden has expressed a willingness to work with Congress to establish a comprehensive regulatory framework for digital assets.

Furthermore, former President Donald Trump announced he would accept crypto for campaign donations.

These events, along with both houses of Congress voting to overturn an SEC crypto-related rule despite President Biden’s veto threat, indicate a significant move towards mainstream acceptance of cryptocurrency as a financial asset.