No More Than 50% Chance of Spot Ether ETF Approval By May, JPMorgan Says

There has been some optimism in the market about the approval of a spot ether (ETH) exchange-traded fund (ETF) by May 23 this year, which is the Securities and Exchange Commission’s (SEC) deadline for the Ark 21Shares application. Per JPMorgan (JPM), the probability of the SEC approving the same by May is no more than 50%.

Since the BTC ETF narrative gripped the market last year, traders have been looking at ether as the next likely candidate to get a spot ETF approval in the U.S. Reflecting this sentiment is the discount to net asset value (NAV) for the Grayscale Ethereum Trust (ETHE, which has been contracting since the summer, and has lingered around 12% over the last two months, according to JPMorgan. Per the investment bank, some have argued that the SEC’s decision not to mention ETH in its lawsuit against crypto exchanges for violating securities law means the regulator will likely classify the cryptocurrency as a commodity in the coming months, a necessary condition for spot ETF approval. Others have contended that the approval of ether futures-based ETFs in September last year “by itself implies that ether is deemed to be a commodity.”

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2024-01-19 14:12