Ether spot ETFs still have no more than 50% chance of approval in May
There will likely be litigation against the SEC after May if Ethereum ETFs are not approved.
Recent news that the US Securities and Exchange Commission (SEC) is investigating companies associated with the Ethereum Foundation is consistent with the view that there is no more than a 50% chance that an exchange-traded fund will be approved. spot ether (ETH) exchange (ETF) in May, JPMorgan (JPM) said in a research report on Thursday.
The bank reiterated its view that approval of these products is unlikely next month, a position first expressed in January. The SEC must make final decisions on some of the ETF applications by May 23.
âIf the ether spot ETF is not approved in May, then we assume there will be litigation against the SEC after May,â wrote analysts led by Nikolaos Panigirtzoglou.
JPMorgan said the most likely outcome is that the SEC will eventually lose this litigation, similar to what happened in the Grayscale and Ripple cases, and will eventually approve spot ether ETFs. But not in May.
One of the reasons the SEC is likely to lose any litigation is because of declining concentration in Ethereum staking, raising the possibility that ether will avoid being designated as a security, according to the report.
The bank noted in a report last week that Lido's share of ether staking has continued to fall, which should reduce concerns about concentration on the network.
