JPMorgan foresees eventual approval by the U.S. Securities and Exchange Commission (SEC) for spot Ethereum exchange-traded funds (ETFs), but the likelihood for May stands at 50%, potentially leading to litigation if rejected.
Nikolaos Panigirtzoglou, a managing director at JPMorgan, projects SEC approval for spot Ethereum ETFs in the future. However, he maintains a 50% chance for approval in May, anticipating possible litigation following a rejection.
Panigirtzoglou stated, “If there is no spot Ethereum ETF approval in May, then we assume there is going to be a litigation process after May.” JPMorgan believes the SEC may ultimately lose this litigation, akin to previous legal battles involving Grayscale and Ripple.
The SEC recently solicited comments on proposed rule changes for Bitwise Ethereum ETF, Grayscale Ethereum Trust, and Fidelity Ethereum Fund. Blackrock also awaits SEC consideration for a spot Ethereum ETF.
Analysts, including Bloomberg’s Eric Balchunas, have tempered expectations for May approval, citing a downward revision of odds from 70% to 25%. Despite this, some, like Standard Chartered Bank, anticipate approval, linking potential approval to a surge in Ethereum’s value.
Reports suggest the SEC may be considering classifying Ethereum as a security, prompting calls for clarification from lawmakers. SEC Chair Gary Gensler has refrained from confirming Ethereum’s classification.
