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Ether Spot ETFs Still Have No More Than 50% Chance of Approval in May: JPMorgan

Apr 10, 2024
  • JPM says the odds of a spot ether ETF approval in May are still no more than 50%.
  • There will likely be litigation against the SEC if the regulator doesn’t approve the products in May, the report said.
  • Spot ether ETFs will eventually be approved, the bank said.
The SEC’s ongoing investigation into Ethereum Foundation-linked companies may decrease the likelihood of ETH ETF approval before May, according to JPMorgan’s assessment in their Thursday research report.
The bank maintains its stance that it is unlikely for these products to be approved next month, a stand they took back in January. The SEC has until May 23rd to make final judgments on certain ETF applications. Following the SEC’s approval of spot bitcoin (BTC) ETFs in January, there have been rumors that ether ETFs could also be given the green light.

If the SEC does not approve any spot ETFs in May, analysts believe there will be lawsuits initiated against the SEC following this month.

JPMorgan predicts that the SEC is likely to ultimately drop its opposition to spot Ethereum ETFs, following precedents set in the Grayscale and Ripple lawsuits. However, this approval is not anticipated to occur in May.

An possibility explained in the report is that the SEC may lose their case due to the decreasing dominance of Ethereum in staking, increasing the likelihood that ether won’t be classified as a security.

Last week, the bank mentioned in a report that Lido’s control of staked ether has decreased. This decrease may alleviate concerns about excessive centralization within the network.

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2024-04-11 17:12