Ether Spot ETFs Still Have No More Than 50% Chance of Approval in May: JPMorgan
The U.S. Securities and Exchange Commission (SEC) is investigating companies linked to the Ethereum Foundation, which JPMorgan believes aligns with a 50% chance of spot ether (ETH) exchange-traded fund (ETF) approval in May. JPMorgan maintains its stance from January that approval is unlikely next month. The SEC must finalize decisions on some ETF applications by May 23. If no spot ether ETF is approved in May, JPMorgan predicts litigation against the SEC. The bank expects the SEC to lose this litigation, as it did in the Grayscale and Ripple cases, and eventually approve spot ether ETFs, but not in May. This is due to the decreasing concentration in Ethereum staking, which increases the likelihood of ether not being classified as a security.
