Spot Ethereum ETFs Approval Odds
As Ethereum’s price surged on January 11, following the approval of eleven spot Bitcoin ETFs by the SEC, JPMorgan’s analyst Nikolaos Panigirtzoglou believes that the likelihood of SEC approving spot Ethereum ETFs by May is uncertain, giving it no more than a 50% chance of happening before the deadline.
SEC’s View on Ethereum and Bitcoin
Despite the recent approval of spot Bitcoin ETFs, the SEC still views cryptocurrencies other than Bitcoin as securities. SEC Chair Gary Gensler has suggested that tokens using staking protocols, like Ethereum’s ETH, could be considered securities under U.S. law, refraining from clearly stating whether ETH is a security.
Ethereum ETF Approval Optimism
Despite JPMorgan’s cautious perspective, analysts like Bloomberg Intelligence’s James Seyffart are more optimistic about the approval of spot ETH ETFs.
Influence of the Spot Bitcoin ETF Approval
The SEC’s approval of spot Bitcoin ETFs was partly influenced by its previous approval of Bitcoin futures ETFs and a federal court ruling mandating the SEC to review its rejection of Grayscale’s attempt to convert its Bitcoin Trust into a spot ETF.
SEC Chair Gary Gensler’s Caution
SEC Chair Gary Gensler explained that the SEC’s decision to approve 11 spot Bitcoin ETFs doesn’t constitute an endorsement of Bitcoin, pointing out Bitcoin’s speculative nature, its limited use as a payment mechanism, and concerns about fraud and conflicts within the sector.
Hot Take
The SEC’s approval of Bitcoin ETFs does not set a precedent for other crypto assets, suggesting a cautious and measured approach to future cryptocurrency ETFs.
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