Claim $500JPMorgan Doubts May Approval for Spot Ethereum ETF
JPMorgan has expressed skepticism regarding the Securities and Exchange Commission’s (SEC) potential approval of spot Ethereum ETFs by May. In a recent interview, Nikolaos Panigirtzoglou, a figure at JPMorgan, emphasized the SEC’s need to categorize Ethereum as a commodity akin to Bitcoin to facilitate such approval. However, Panigirtzoglou conveyed his reservations, stating,
“This is far from given, and I wouldn’t put more than a 50% chance to the SEC classifying Ethereum as a commodity before May.”
Comparison with Bitcoin ETFs
The context of this uncertainty stems from the SEC’s recent move to approve spot Bitcoin ETFs, marking a significant shift after a decade of rejections. Ethereum’s market dynamics have shown a notable surge, with a nearly 18% increase in its price over the last week. However, at press time, ETH had fallen under bearish pressure, exchanging hands at $2,591.62, a 0.82% decline from the intra-day high.
Despite these positive market indicators and the success of Bitcoin ETFs, the SEC’s approach to cryptocurrencies other than Bitcoin remains cautious and, as Panigirtzoglou suggests, is still skewed towards viewing them as securities.
Implications of Ethereum’s Staking Protocols
The debate over Ethereum’s classification is further complicated by its transition to staking protocols. SEC Chair Gary Gensler has previously indicated that tokens using such protocols could fall under the category of securities. This stance was evident during a congressional hearing last year, where Gensler refrained from categorically defining Ethereum’s status.
Moreover, while approving Bitcoin ETFs, Gensler’s remarks did not hint at a similar openness towards other cryptocurrencies, including Ethereum.
JPMorgan’s Stance on Ethereum ETF Contradicted
Despite JPMorgan’s cautious outlook, other market analysts, like Bloomberg Intelligence’s James Seyffart, hold a more optimistic view on the approval of Ethereum ETFs. The recent filings for spot ETH ETFs by major firms such as BlackRock and Fidelity underscore this optimism.
Moreover,, BlackRock’s CEO Larry Fink has acknowledged the potential for an Ethereum ETF in the United States following the successful launch of their Bitcoin ETF, which saw impressive trading volumes.
Read Also: Bitcoin Price Slips 6% to Hit $43500, Is Sell-the-News Strategy in Action?
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