[NEWS] JP Morgan Bank predicts that the probability of an Ethereum spot ETF being approved by May this year is "less than 50%"

Nikolaos Panigiritzoglou, managing director of JPMorgan Bank, told The Block, a US cryptocurrency media outlet, that the chances that the SEC (Securities and Exchange Commission) will approve an Ethereum (ETH) spot ETF by May of this year are "less than 50%."

On the 11th, the SEC approved a Bitcoin spot ETF, which it had rejected for more than 10 years since the first application was made. Now that the Bitcoin spot ETF has been approved, there are several companies, including BlackRock, that have applied to list an Ethereum spot ETF, and it is predicted that the SEC will approve it as early as May.

However, JPMorgan analysts seem to think that the SEC's approval in May is unlikely.

Panigirtsoglou said, "The SEC needs to classify Ethereum as a security or non-security before approving the listing. However, there is less than a 50% chance that the SEC will classify Ethereum as a commodity."

On the other hand, he said, "The SEC still indicates that it will continue to consider all crypto assets other than Bitcoin as securities."

Last year, JP Morgan analyzed that "U.S. lawmakers are likely to place Ethereum in a new category to avoid classifying it as a non-securities product."

Last year, SEC Chairman Gary Gensler repeatedly stated that crypto assets that use the proof-of-stake (PoS) consensus algorithm, such as Ethereum, "can be considered securities under U.S. law."

In addition, while the SEC approved a Bitcoin spot ETF last week, it emphasized that "this decision in no way indicates the SEC's willingness to approve listing standards for crypto assets that qualify as securities," suggesting its reluctance to realize altcoin spot ETFs.

Some analysts are optimistic about approval

Some analysts, including Bloomberg Intelligence's James Seyffart, are more optimistic than JP Morgan, saying that an Ethereum spot ETF will be approved.

The SEC has already approved a Bitcoin futures ETF, so it has finally approved a Bitcoin spot ETF. Now that an Ethereum futures ETF is listed, there is a strong view that it is only a matter of time before the SEC approves an Ethereum spot ETF.

BlackRock and Fidelity, among others, have applied for an Ethereum spot ETF. The first deadline is for HashdeX and VanEck, and the review results are expected to be announced in May.

Reference:The Block
Image: Shutterstock

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