🔥🔥🔥 There’s a 50% Chance of #EthereumETF Approval Next Month: #JPMorgan
JP Morgan analysts suggest that the Securities and Exchange Commission's decision on a spot Ethereum exchange-traded fund (ETF) next month is as uncertain as it is likely to be rejected.
Citing the SEC's recent scrutiny of Ethereum-related entities, JP Morgan analysts expressed skepticism about the approval prospects in a note released on Thursday. The report reflects a growing pessimism within the market regarding the potential introduction of this new investment avenue.
The analysts highlighted the SEC's investigation into firms associated with the Ethereum Foundation, a non-profit organization supporting the Ethereum ecosystem, as a discouraging factor for approval. Although the SEC neither confirmed nor denied this investigation to Decrypt, other media outlets corroborated the news.
JP Morgan's report suggested that if an Ethereum ETF fails to gain approval by the upcoming deadline, applicants may resort to legal action against the regulator. The analysts speculated that the SEC might eventually lose such litigation, akin to previous legal battles involving entities like Grayscale and Ripple, leading to the eventual approval of spot Ethereum ETFs, albeit not as soon as anticipated in May.
JP Morgan, once optimistic about Ethereum's classification as a commodity, now doubts the SEC will make such a designation soon. Bloomberg Intelligence's ETF analysts also suggest approval for Ethereum ETFs is unlikely next month. James Butterfill from CoinShares echoes this sentiment, cautioning investors about potential disappointment as the deadline nears.
Major investment firms like #BlackRock , Fidelity, and Grayscale are keen to introduce Ethereum ETFs, providing investors access to the second-largest cryptocurrency without the need for direct ownership. Unlike Bitcoin ETFs, which the SEC approved in January with successful trading debuts, the future of Ethereum ETFs remains uncertain.
Source - decrypt.co