SEC to eventually approve spot Ethereum ETFs, says JPMorgan

JPMorgan remains optimistic about the Securities and Exchange Commission's eventual approval of spot Ethereum exchange-traded funds despite earlier this year assigning not more than a 50% chance for approval by May, the initial deadline.

"If there is no spot Ethereum ETF approval in May, then we assume there is going to be a litigation process after May," Nikolaos Panigirtzoglou, managing director and global market strategist at JPMorgan, told The Block. "We believe that the most likely scenario is that the SEC eventually loses this litigation , which means that eventually, the SEC will approve spot Ethereum ETFs .

Notably, Panigirtzoglou has kept the odds of May approval at 50% despite recent reports suggesting the SEC is investigating the Ethereum Foundation and actively seeking to classify ether as a security through legal avenues. Earlier this week, Panigirtzoglou and his team said in a report that Ethereum's easing centralization concerns raise the chance that ETH will avoid being designated as a security in the future. The team pointed out that network decentralization plays a role in determining the classification of a digital token as a security, as highlighted by the SEC's release of the "Hinman documents" last June.

The SEC is currently soliciting comments on a handful of spot ETH ETF applications, including from Fidelity, Grayscale and Bitwise. Comments for all three are due later this month.Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures.

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