After the approval of the spot Bitcoin ETF, all eyes turn to the approval of the spot Etheruem ETF, while optimism about the approval of ETH ETFs is rising in the market.
At this point, while the ETH price was rising in response to this optimism, an assessment came from JP Morgan regarding spot Ethereum ETF approval.
According to Coindesk, JP Morgan analysts said that it is difficult to approve Ethereum ETFs due to lawsuits filed against cryptocurrency exchanges in the USA.
While the market expects a spot ETH ETF to be approved in May, JPMorgan sees no more than a 50% chance that the SEC will approve ETFs by May.
JP Morgan analysts led by Nikolaos Panigirtzoglou had this to say about the spot Ethereum ETF approval:
“Judging by the SEC's lawsuits against cryptocurrency exchanges that provide staking services for proof-of-stake blockchains, including Ethereum, we think the probability of approval of a spot Ethereum ETF by May of this year is no higher than 50%.
Because the approval of the ETH ETF means that the SEC will classify Ethereum as a commodity as of May.
At this point, we at JP Morgan doubt that the SEC will classify ETH as a commodity.
“This makes approval of a spot Ethereum ETF more challenging until the lawsuits are resolved.”
Analysts recently stated that Ethereum is classified as a security by the SEC.
*This is not investment advice.