- JPMorgan predicts eventual SEC approval for spot Ethereum ETFs
- The SEC is currently soliciting comments for a handful of spot ETH ETF applications
- JPMorgan remains optimistic about the SEC’s eventual approval of spot Ethereum ETFs despite earlier assigning not more than a 50% chance for approval by May
JPMorgan predicts eventual SEC approval for spot Ethereum ETFs despite earlier assigning only a 50% chance for approval by May. The bank remains optimistic about the SEC’s eventual approval of spot Ethereum exchange-traded funds.
Diminished Hope for May Approval
Several analysts have decreased their optimism for SEC approval of a spot ether ETF by May. Last week, Bloomberg’s Eric Balchunas said his odds for May approval remain pessimistic at 25%, down from 70% in January. The SEC is currently soliciting comments on a handful of spot ETH ETF applications.
Background on Ethereum ETF Applications
The SEC is soliciting comments on spot ETH ETF applications from Fidelity, Grayscale, and Bitwise. Comments for all three are due later this month. JPMorgan’s Nikolaos Panigirtzoglou said if there’s no approval in May, there will likely be a litigation process, which the SEC will eventually lose. This will lead to the eventual approval of spot Ethereum ETFs.
Ethereum Decentralization and Security Status
JPMorgan’s team said Ethereum’s easing centralization concerns raise the chance it will avoid being designated a security. They pointed out network decentralization plays a role in determining if a token is a security. The SEC highlighted this in releasing the Hinman documents last June.
Conclusion
While JPMorgan sees diminished hope for Ethereum ETF approval in May, the bank remains optimistic the SEC will eventually have to approve spot Ethereum ETFs after losing litigation. In the meantime, the network’s increasing decentralization helps Ethereum’s case for not being classified as a security.
