Last week, Ethereum developer Consensys brought the U.S. Securities and Exchange Commission to court, seeking a declaration that ether is not a security. This legal battle will be a prolonged affair, according to investment bank TD Cowen. As a result, the bank reiterated that spot Ethereum exchange-traded funds are unlikely to gain approval before 2025.

"We believe the litigation will take years while our view remains that the SEC is unlikely before 2025 to approve Ethereum ETFs," TD Cowen Washington Research Group, led by Jaret Seiberg, wrote in a note on Monday.

SEC Chairman Gary Gensler is "okay" with the court deciding whether ETH is a security or commodity, according to TD Cowen.

"As we have argued in prior notes, we believe Gensler wants the courts to define how the law applies …