JP Morgan analysts have expressed uncertainty regarding the approval of a spot Ethereum exchange-traded fund (ETF) by the Securities and Exchange Commission (SEC) next month.
JP Morgan analysts have expressed uncertainty regarding the approval of a spot Ethereum exchange-traded fund (ETF) by the Securities and Exchange Commission (SEC) next month. Citing the SEC's recent actions against Ethereum-related entities, the analysts noted a pessimistic outlook for approval in a note released on Thursday.
The findings highlighted the SEC's investigation into firms associated with the Ethereum Foundation, a non-profit organization supporting the Ethereum ecosystem. While the SEC did not confirm the investigation, JP Morgan analysts interpreted this development as further evidence that the chances of spot Ethereum ETF approval by May are no higher than 50%.
If an Ethereum ETF is not approved by the upcoming deadline, the report suggests that applicants are likely to take action against the regulator. The analysts also expressed a belief that the SEC may eventually lose legal battles, similar to the cases involving Grayscale and Ripple last year, leading to the eventual approval of spot Ethereum ETFs. However, they do not anticipate this happening as soon as May.
In a more optimistic perspective shared last month, JP Morgan analysts suggested that Ethereum could be classified as a commodity instead of a security due to its increased decentralization. JP Morgan is not alone in lowering expectations for Ethereum ETF approval. Bloomberg Intelligence ETF analysts previously stated that approval in the next month is unlikely.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
