JPMorgan Doubtful of SEC Approval for Spot Ethereum ETFs
JPMorgan analysts are skeptical that the Securities and Exchange Commission (SEC) will approve spot Ethereum exchange-traded funds (ETFs) in May, which is the deadline for approval. The analysts believe that for the SEC to approve these ETFs, Ethereum would need to be classified as a commodity rather than a security. However, JPMorgan’s Nikolaos Panigirtzoglou stated that this classification is unlikely, giving it less than a 50% chance before May.
SEC Continues to View Non-Bitcoin Cryptocurrencies as Securities
According to Panigirtzoglou, the SEC still considers all cryptocurrencies other than Bitcoin as securities. Last year, JPMorgan suggested that U.S. lawmakers could create a separate category for Ethereum to avoid classifying it as a security. However, SEC Chair Gary Gensler has previously indicated that tokens using staking protocols like Ethereum’s ETH could be considered securities under U.S. law.
Optimism for Spot ETH ETF Approval
While JPMorgan remains doubtful, some analysts, including Bloomberg Intelligence’s James Seyffart, are more optimistic about the approval of spot ETH ETFs. Several firms, such as BlackRock and Fidelity, have recently filed for these ETFs, indicating market interest in their launch.
Hot Take: SEC Approval of Spot ETH ETFs Remains Uncertain
The question of whether the SEC will approve spot Ethereum ETFs continues to loom large in the crypto market. JPMorgan analysts express doubt regarding the likelihood of approval due to the classification of Ethereum as a commodity rather than a security. While some remain hopeful about approval, it remains uncertain how the SEC will ultimately decide. Market participants eagerly await the SEC’s ruling, which will have significant implications for the accessibility and tradability of Ethereum.
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