JPMorgan weighed in on the SEC's actions in connection with the spot Ether ETF approval.

JPMorgan evaluated the potential impact of the SEC's warning to crypto trading platform Robinhood on spot Ethereum ETF approval

According to JPMorgan analysts, the US SEC's warning to Robinhood that it is trading unregistered securities is unlikely to affect the approval process of spot Ethereum ETFs.

In the report published yesterday by JPMorgan analysts, it is claimed that the actions taken by the SEC regarding unregistered securities trading will not constitute an obstacle for spot ETH ETFs, but it is unlikely that the approval will come this month

Analysts offer the view that the process will be similar to #Bitcoin . So much so that it is thought that the regulatory authority's decision to allow future Ethereum ETFs but prevent spot ETFs could start a new legal process. At the end of this legal process, it is estimated that the losing side will be the SEC, while Bitcoin stands as a precedent.

On the other hand, SEC's warning to Robinhood earlier this week was brought to the agenda of crypto markets. The US regulator has reported that the platform may face an enforcement action for violating securities laws.

RobinHood offers trading over 10 cryptocurrencies other than Bitcoin and Ethereum on its platform. This move by the SEC was interpreted as an effort to strengthen the position to classify assets other than #BTC and #ETH as securities.

However, according to JPMorgan analysts, the non-approval of spot Ethereum ETFs this month will not be priced as a negative in the markets. Because analysts point out that Grayscale Ethereum Trust is acting at a discount and think that the market has already priced in the view that there will be no approval this month.

Another development on the subject this week was that Grayscale withdrew its application for a forward Ethereum ETF. In a statement to Block, JPMorgan chief analyst Nikolaos Panigirtzoglou interpreted this decision as Grayscale choosing to focus on converting its existing Ethereum trust into a spot #Ethereum ETF.